$2M Professional Liability (E&O) Insurance for Online Course Creators

For online course creators whose client contract asks for $2M, Professional Liability (E&O) usually means $2M per claim and $2M aggregate, and a $1M/$2M policy may fall short.

What does a $2M requirement mean for online course creators?

Professional Liability (E&O, short for Errors and Omissions) responds to claims that your course content or teaching caused a client a financial loss. Large licensing deals often include a clause like this:

• Per claim and aggregate: the most the policy pays for one claim, and for all claims in one policy year. This clause asks for $2M on both.
• Check your certificate. A certificate of insurance (a one-page proof of coverage) may show "$2M" as only the aggregate. Look for the per claim line.
• 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 the policy covers).

Who asks online course creators for $2M?

Many clients ask course creators for $1M. $2M shows up when one buyer puts your course in front of many people:

• Large employers licensing your compliance, safety or sales course for thousands of staff.
• Universities adding your course to a credit or certificate program, or hiring you to build one.
• School districts buying digital lessons, test prep or teacher training for every school.
• Government agencies funding workforce or exam training, often with the limit written into the request for proposal (RFP).

How is $2M built?

Many course creators are placed on Miscellaneous Professional Liability, a form made for service businesses that do not have their own policy type. If you sell your own learning app, Technology E&O may fit better. At $2M, the limit is often one primary policy (the policy that pays first) written at $2M/$2M.

Some clients also accept a $1M primary policy plus a $1M excess layer, a second policy that pays after the first limit is used up. The excess should follow form, meaning it uses the primary policy's terms. Confirm with the client that primary plus follow-form excess meets the clause. A commercial umbrella almost never counts toward this limit.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage and on what terms. At $2M, expect closer questions about your courses:

• Your course topics. Compliance, finance, health, legal and exam prep courses usually get the closest review.
• The contract asking for $2M: the client, how many learners it reaches, and whether you must update content when rules change.
• Whether your sales pages or contracts promise results, such as pass rates, income, job offers or continuing education credit approval.
• Who builds the content, whether you license material from others, and any live coaching or learners under 18.
• Revenue by client type, loss runs (a report from your carrier listing past claims), known incidents, and your current policy with its retroactive date.

What affects the cost?

• Subject matter. Money, health, legal and compliance courses usually cost more to insure than hobby courses.
• Reach and contract size. A course used by a whole workforce or district means bigger possible losses.
• Results claims. Bold promises in ads and sales pages can raise the price or narrow options.
• How the limit is built. A single $2M/$2M policy and a primary plus excess setup may price differently. A higher retention (the amount you pay on each claim, like a deductible) usually lowers the premium.
• Claims history. Prior claims and known incidents can affect the price.

Frequently asked questions

What kind of claim could reach $2M for a course creator?

A claim that your course caused a client a financial loss could reach $2M, but a demand for your fees back usually does not. Hypothetical examples: an employer says your compliance course taught an outdated rule and claims the resulting losses. A state program says the topics your exam prep course left out caused trainees to fail, and it claims its costs to retrain them. Refunds of fees you were paid are often excluded, so check the policy and contract wording.

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

Usually not, because a $1M/$2M policy pays only $1M on any one claim. Request new quotes through Morrow for a $2M primary policy, or for a $1M excess layer over your current policy, where an excess market is available and the retroactive date matches the primary. Morrow can ask carriers to keep your retroactive date and prior acts coverage (cover for work done before the new policy starts) where the market allows. Whether to keep your current policy in force until new coverage starts depends on your policy and contract terms. Report anything that could become a claim to your current carrier before switching.

Does Professional Liability cover a copyright claim over my course?

It depends on the policy. Copyright and trademark claims often fall under media liability (cover for claims about content, such as copying or ownership disputes), which some policies include and others exclude. If the contract asks you to vouch for your content's originality, check the wording, and see the contractual liability exclusion.

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.