$1M Professional Liability (E&O) Insurance for Court Reporters

For court reporting firms and freelance reporters: a $1M Professional Liability (E&O) requirement means your policy can pay up to $1M when a client says your work caused a financial loss.

What does a $1M requirement mean for court reporters?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work caused a client a financial loss. Clients bring claims over things like a transcript error or a late delivery. Whether a policy covers delays, no-shows or fee refunds depends on its wording, so check for exclusions (things the policy does not cover). A typical clause looks like this:

• Per claim: the most the policy pays for any one claim. Here, $1M.
• Aggregate: the most the policy pays for all claims in one policy year. Here, $2M. A $1M/$1M policy would not meet this sample clause. A $1M/$2M policy usually meets either wording, but check your own contract.
• Subcontracted reporters: the clause names them, so check your policy covers them.
• Claims-made: the policy covers claims made and reported while it is active, for work on or after the retroactive date (the earliest date of work the policy covers).

See Professional Liability (E&O) limits explained.

Who asks court reporters for $1M?

$1M requests often come from:

• Law firms signing vendor or preferred agency agreements.
• Corporate legal departments.
• Insurance company litigation units.
• Courts and government agencies hiring for transcripts or hearings.
• Agencies that hire freelance reporters and ask them to carry their own policy.

Some larger clients ask for $2M instead, often for multi-party litigation or agency work with many reporters (see $2M Professional Liability for court reporters). Check whether your contract says $1M or $2M, and per claim or aggregate, before you compare quotes. For the wider field, see $1M Professional Liability for legal support.

How is $1M built?

At $1M, the limit is usually one primary policy (the policy that pays first). Court reporters usually buy Miscellaneous Professional Liability, a form made for service businesses. Law firms buy lawyers professional liability, a different form that does not cover you. If you host remote depositions or store recordings, ask about Cyber insurance (coverage for data breaches and computer attacks), because many Professional Liability policies exclude data breaches. Also check the contractual liability exclusion, a policy term that limits coverage for promises you make in a contract.

Clients usually cannot be added as additional insured (given rights under your policy) on Professional Liability. Many accept a certificate of insurance (a one-page proof of your coverage) instead. Check early what your contract requires.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage and on what terms. For court reporters, they usually ask about:

• Your services (stenographic, voice writing, digital recording, realtime, video, remote hosting, transcription) and their share of revenue.
• How many reporters you use.
• Reporter certifications and your proofreading steps before a transcript is certified.
• How you store notes, audio, video and exhibits, and who can access them.
• Revenue, largest clients, prior claims, known incidents and your retroactive date.

What affects the cost?

• Services mix. Realtime, video and remote hosting can add exposure.
• Revenue and volume. More jobs and expedited work mean more chances for a claim.
• Staffing. The number of reporters, and whether they are employees or freelancers, can change terms.
• Claims history. Prior claims can raise the price or narrow options.
• Aggregate, retention and defense terms. $1M/$2M usually costs more than $1M/$1M. A higher retention (the amount you pay on each claim before the policy pays, like a deductible) usually lowers the premium. Defense outside the limit often adds cost.

Frequently asked questions

Can my commercial umbrella count toward $1M Professional Liability as a court reporter?

Almost never. A commercial umbrella almost never covers Professional Liability, so the $1M usually has to come from the Professional Liability policy itself (see Does a commercial umbrella cover Professional Liability?).

I have a $1M/$1M policy and the contract asks for $1M/$2M. What now?

Request new quotes for a $1M/$2M policy. Morrow can request quotes and ask that your retroactive date and prior acts coverage (coverage for work done before the new policy starts) be kept where the market allows. Keep your current policy in force until the new one starts. Report known incidents to your current carrier before that policy ends.

Do freelance reporters need their own policy?

Often yes, if the agency agreement asks for it. Many agencies require freelancers to carry their own policy, while some firm policies cover contract reporters. Check the agreement and the policy wording.

What if I retire or close my firm?

A claim about an old transcript can come years later. A claims-made policy only pays for claims reported while it is active, so claims after it ends are generally not covered. An extended reporting period (a "tail") gives you extra time to report claims about past work.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.