Jump ahead to learn:

• Is Maryland Professional Liability insurance coverage required?
• How much does Maryland Professional Liability insurance cost?
• What’s covered by E&O insurance in Maryland?
• What types of businesses could benefit from Professional Liability in Maryland?
• Are Professional Liability insurance and E&O insurance the same?
• How NEXT helps protect Maryland business owners

Is Maryland Professional Liability insurance coverage required?

Professional liability insurance in Maryland, also called Maryland E&O insurance (errors and omissions), may be a necessity for your business for:

• Professional licenses and permits. The city where you work may require professional liability insurance for professional certifications, depending on your industry.
• Getting more work. Some clients, including state and local governments, may require a certificate of insurance (COI) before they’ll work with you, especially on high-cost projects. This proof of insurance may mandate professional liability/E&O.
• Financial protection. MD small businesses with an errors and omissions policy could get financial help if they’re accused of professional negligence or if they make a professional mistake that costs a client money.

While professional liability is not required for all businesses, it offers a layer of protection that could be an asset to any business owner.

Also, many companies working on state or local government contracts may need professional liability insurance. For instance, the City of Baltimore requires emergency professional services consultants to have professional liability coverage of no less than $1 million to secure a government work contract.

How much does Maryland Professional Liability insurance cost?

The price you’ll pay for Maryland professional liability insurance/E&O insurance varies depending on many factors, including:

• The type of work that you do
• Your work experience
• The location(s) where you operate
• How many employees you have
• How high you set your insurance deductibles, policy limits and coverage limits
• Your insurance claims history

NEXT makes it fast and affordable to get MD professional liability insurance or E&O insurance online in about 10 minutes.

Learn more about the cost of professional liability insurance.

What’s covered by E&O insurance in Maryland?

Maryland professional liability insurance can help cover some business costs if: 

• You or one of your employees make a professional mistake that costs a client money.
• Your business faces legal accusations of professional negligence such as wrongdoing or inaction that causes a client financial harm.
• You make a mistake, such as a missed deadline for a client, that results in their financial peril.
• Your business is accused of misrepresentation of services.

Here are some examples of how your insurance company could help with risk management:

• A small business in Baltimore hires a tax preparer to manage its year-end returns. Due to an oversight, the preparer misses a significant deduction, resulting in a higher tax bill for the client. The business sues, claiming financial loss from the mistake. Professional liability insurance could help cover legal defense costs and damages related to the error.**
• A property developer sues a structural engineer in Silver Spring after claiming foundation instability delayed construction and increased costs. The developer alleges the design failed to account for soil conditions. Professional liability insurance could help with legal expenses and potential damages.
• A management consultant based in Columbia advises a tech startup on its market entry strategy. After following the consultant’s recommendations, the client experiences significant financial losses and claims the advice was based on inaccurate data. Professional liability insurance could help cover the consultant’s legal defense and settlements or judgments related to the claim.

What types of businesses could benefit from Professional Liability in Maryland?

Many small, medium and large businesses in many industries could benefit from E&O/professional liability insurance policy — a type of Maryland business insurance.

Liability coverage is usually sought after by:

• Real estate agents
• Insurance agents
• Consultants
• Accountants, tax preparers and financial services
• Engineers
• Architects
• Construction/contractors
• Most professional services

Are Professional Liability insurance and E&O insurance the same?

Professional liability insurance and errors and omissions insurance, or E&O, refer to the same business insurance coverage. The names can be used interchangeably. But depending on your industry, one term may be favored over the other.

E&O is usually used by:

• Insurance professionals
• Real estate agents
• Property managers
• Construction/contractors

Professional liability policy is usually used by:

• Accountants, tax preparers and financial services
• Architects
• Engineers
• Legal services

How NEXT helps protect Maryland business owners

NEXT makes it fast, easy and affordable to protect your Maryland business — and you can do it all online.

1. We’ll ask a few questions about your business and give you a quote. You select your coverage options and buy your policy in about 10 minutes.
2. Your certificate of insurance (COI) will be available immediately at no extra cost, and you can access your policy 24/7 via web or mobile app.
3. If you have questions, our licensed, U.S.-based insurance professionals are ready to help.

Start a free quote with NEXT.

Resources for Maryland business owners

• Maryland Department of State
• Maryland Insurance Administration
• Maryland Business Express
• Comptroller of Maryland
• Maryland Division of Occupational and Professional Licensing
• Maryland Small Business Development Center