Professional liability insurance — also called Errors & Omissions (E&O) — is the coverage most grant writers ask about first. For many professional-services roles these two terms refer to the same kind of coverage. It is generally intended to help respond to claims that allege a mistake, oversight, or shortfall in the professional work itself.
What it is generally intended to address
For grant writers, professional liability (E&O) is typically used to respond to allegations connected to the grant-writing work, such as:
- a claim that an error or omission in an application affected the outcome;
- an allegation that a deadline was missed or a submission requirement was not met;
- a dispute over the accuracy or completeness of materials prepared for a client;
- an allegation that advice or strategy did not meet a client's expectations.
In the event of a covered claim, this kind of coverage may help with the costs of responding — which can include defense costs — subject to the terms of the actual policy. Whether any particular matter would be covered depends entirely on the policy language and the facts.
Illustrative scenarios
These are general illustrations only — they do not imply that a similar claim would be covered:
- A client alleges that a missed attachment in a federal application contributed to a rejected proposal and seeks to recover fees.
- A non-profit asserts that reporting prepared on its behalf contained errors and claims associated costs.
- A client disputes the work product and threatens legal action over the engagement.
In situations like these, professional liability (E&O) is the coverage that would typically be looked to first.
Packaging and limits
Professional liability and general liability can often be packaged together on the same policy, which many grant writers find convenient. Liability limits from $500,000 up to $10,000,000 may be available, subject to the carrier and your state. If you are not sure what limit fits, you can ask us to recommend one.