$1M Professional Liability (E&O) Insurance for PR Firms

For PR firms whose client contract asks for $1M: Professional Liability at $1M usually means $1M per claim, and the contract may also set an annual aggregate, so check both numbers.

What does a $1M requirement mean for PR firms?

Professional Liability (E&O, short for Errors and Omissions) covers claims that your work or advice caused a client a financial loss. For a PR firm, that includes claims over content you write and publish. A typical clause reads:

• Per claim and aggregate: per claim is the most the policy pays for one claim. This clause needs a $2M aggregate, so a $1M/$1M policy falls short. A $1M/$2M policy usually meets it, though the clause may ask for more.
• Media liability: coverage for claims over copyright, trademark, defamation (false statements that harm a reputation) or privacy in content you create. For example (hypothetical), a press release repeats a client's claim about a rival, and the rival alleges defamation.
• 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).

Who asks PR firms for $1M?

• Brands and communications teams hiring an outside firm.
• Agencies that hire your firm as a subcontractor and pass their requirement down.
• Technology, healthcare and financial companies, which may use a standard insurance checklist for vendors.
• Nonprofits, universities and government offices.

Requests for $1M are often seen, and some contracts ask for $2M or more. $2M often appears with large or regulated clients, or investor relations or crisis work. $1M/$1M and $1M/$2M differ only in the aggregate, while $2M raises the per claim limit. See $2M Professional Liability for PR firms.

How is $1M built?

At $1M, the limit is usually one primary policy (the policy that pays first). No excess layers (extra policies stacked above it to raise the limit) are needed. Higher limits may be one larger primary policy, or a primary plus excess that follows form (matches the primary's terms). A commercial umbrella almost never covers Professional Liability (see Does a commercial umbrella cover Professional Liability?). For more, see Professional Liability (E&O) limits explained.

Clients usually cannot be added as an additional insured (a party the policy also protects) on Professional Liability. Many clients accept a certificate of insurance, which shows coverage exists but does not extend it. Watch for a contractual liability exclusion (a carve-out the policy lists) that can cut back cover for promises you make in a contract.

What will underwriters ask for?

An underwriter is the person at the insurer who decides whether to offer coverage. They usually ask about:

• Your services and the share of revenue from each, such as media relations, crisis work or investor relations.
• How content is approved, including written client sign-off.
• How you clear images, music and quotes, and manage influencers.
• Client industries, especially finance, healthcare and public companies.
• Prior claims, written contracts, and your current policy.

What affects the cost?

• Services mix. Investor relations and crisis work may cost more than routine pitching.
• Revenue, clients and claims history. Larger revenue, regulated clients and prior claims can raise the price.
• Aggregate and retention. A higher aggregate usually costs more. A higher retention (the amount you pay on each claim before the policy pays) usually lowers the premium.
• Defense and prior acts terms. Full prior acts coverage (coverage for work done before the policy began, with no retroactive date) and defense costs paid outside the limit may add cost.

Frequently asked questions

Do I need media liability with $1M Professional Liability as a PR firm?

Often, yes. Press releases, posts and videos are content, and a claim that content copied protected work or defamed someone is a media claim. Some policies cover only advice, so check the wording.

Is $1M enough if my PR contract asks for $1M?

Usually yes for the limit, if the policy's per claim and aggregate numbers match the clause. The contract may set other terms, so confirm the full clause with your client. Whether $1M fits your risk is a separate question. Some larger clients ask for $2M or more. If yours does, send Morrow the clause and Morrow can request quotes at the higher limit.

I have a $1M/$1M policy and my PR client wants $1M/$2M. What now?

You need a policy with a $2M aggregate, so request new quotes for $1M/$2M. Morrow can ask to keep your retroactive date and prior acts coverage (cover for past work) where the market allows. Keep your current policy in force until the new one starts. Report anything that could become a claim to your current carrier before it ends.

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.