$2M Professional Liability (E&O) Insurance for Court Reporters

A $2M Professional Liability (E&O) requirement means your policy must pay up to $2M for one claim, usually written $2M/$2M. This guide is for court reporters whose contract asks for it.

What does a $2M requirement mean for court reporters?

Professional Liability (E&O, short for Errors and Omissions) covers claims that a mistake in your work cost a client money. A $2M clause in a reporting services agreement might read:

• Each claim: the most the policy pays for one claim. Here, $2M.
• Aggregate: the most it pays for all claims in one policy year. Here, also $2M.
• Claims-made: Professional Liability almost always covers claims made and reported while the policy is active, for work done on or after the retroactive date (the earliest date of work covered). See claims-made vs occurrence.
• Three years after: you must keep the policy going after the contract ends, or buy a tail (extra time to report claims about past work).

Who asks court reporters for $2M?

A $2M ask often means the client handles large or many cases. A $1M limit may fit routine deposition work (see $1M for court reporters), while $2M usually signals national firms, insurers or multi-case litigation. It often comes from:

• National and large regional law firms that set one vendor standard for every office.
• Insurance carriers and claims departments that book depositions across many litigated files.
• National scheduling networks that pass their own client's limits down to local reporting firms.
• Corporate legal departments managing high-stakes or multi-case litigation.
• Courts and government agencies contracting for official reporting or hearing transcripts.
• Litigation support firms that bundle reporting with e-discovery (sharing case files electronically) or trial services. See $2M for legal support firms.

How is $2M in Professional Liability built?

At $2M, you usually buy one primary policy (the policy that pays first) at $2M/$2M. Sometimes a $1M primary plus a $1M excess layer reaches $2M. Excess is a policy that pays after the first is used up. It should follow form, meaning it uses the primary's terms.

Confirm with the client that primary plus follow-form excess meets the clause. A commercial umbrella (a policy that adds limits on top of your general liability and auto policies) almost never covers Professional Liability. If you carry $1M today, ask Morrow for new quotes at $2M.

Court reporters usually buy Miscellaneous Professional Liability, a form for service businesses. If you also host data or run e-discovery, you may need Technology E&O (for software and data services) and Cyber (for data breaches and network incidents) too.

What will underwriters ask for?

An underwriter decides whether to offer coverage and on what terms. For a reporting firm at $2M, they often ask about:

• Your service mix: depositions, official court work, video, remote depositions, captioning and general transcription.
• Whether you use staff or freelance reporters, and whether freelancers carry their own coverage.
• How you back up steno notes, audio and video, how long you keep them, and who can access them.
• How you handle sealed testimony, protective orders and exhibit delivery.
• Your share of expedited and daily copy work, and how you track delivery deadlines.
• Revenue, largest clients, any automated transcription tools and prior claims.

What affects the cost?

• Service mix. Remote hosting, video and confidential matters may cost more to cover than routine transcripts.
• Volume and clients. More jobs, larger cases and national clients usually mean more exposure.
• How the $2M is built. One primary policy and a primary plus excess are priced differently.
• Controls and claims history. Backups and proofreading may help. Prior claims can raise the price or narrow options.
• Retention and defense terms. A higher retention (what you pay on each claim before the policy pays, like a deductible) usually lowers the premium. Defense outside the limit usually adds cost.

Frequently asked questions

Do I need $2M Professional Liability as a court reporter?

Only if your contract or client requires it. Read the clause for the per claim and aggregate amounts before you buy.

What kind of claim could reach $2M for a court reporter?

A mistake in a large case could. Two hypothetical examples. Notes and audio from a key deposition are lost, the witness later becomes unavailable, and a party says its case was harmed. Or a transcript sealed under a protective order goes to the wrong party in a large commercial case. Coverage depends on the policy wording and any privacy or data exclusions.

Is $1M/$2M enough if my contract says $2M for court reporters?

Only if the clause asks for $1M per claim. If it asks for $2M per claim, you need $2M/$2M. Report anything that could become a claim to your current carrier before switching. Then send Morrow your policy for new quotes.

Can I add the law firm as an additional insured?

Usually not, and it depends on the carrier. An additional insured is an outside party, like a client, that is added to your policy so it can claim under it. Many clients accept a certificate of insurance (a one-page proof of coverage) showing the $2M limit, but check what your contract requires.

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.