Jump ahead to learn:

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

Is North Carolina Professional Liability insurance coverage required?

Professional liability insurance in NC, also called errors and omissions insurance, or E&O, 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 or E&O.
• Financial protection. NC 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 small business owner.

How much does Professional Liability insurance cost in North Carolina?

The price you’ll pay for North Carolina errors and omissions/professional liability coverage 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 NC professional liability insurance online in about 10 minutes.

Learn more about the cost of professional liability insurance.

What’s covered by E&O insurance in North Carolina?

A North Carolina professional liability insurance policy 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 owner in Charlotte hires a tax consultant to prepare their quarterly filings. The consultant overlooks a major deduction, and the client ends up with a larger tax bill than necessary. The client sues for financial damages related to the error. Professional liability insurance could help cover the consultant’s legal defense and any settlement costs.**
• A local retailer claims that a Raleigh-based marketing consultant’s ad campaign led to public backlash and a drop in sales. The client files a lawsuit alleging poor strategy and misrepresentation. Errors and omissions insurance could help with legal defense costs and any resulting damages.
• After construction is completed, a homeowner claims the Greensboro architect’s plans led to insufficient structural support in a two-story addition. The client sues for the cost of repairs and inconvenience. Professional liability insurance could help cover defense costs and related expenses.

What types of businesses could benefit from Professional Liability in North Carolina?

Many small, medium and large businesses in many industries could benefit from E&O/professional liability insurance policy — a type of North Carolina 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 insurance is usually used by:

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

How NEXT helps protect North Carolina business owners

NEXT makes it fast, easy and affordable to protect your NC 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 North Carolina business owners

• North Carolina Secretary of State
• North Carolina Department of Insurance
• Start My Business NC
• North Carolina Department of Revenue
• North Carolina Department of Professional Licenses & Permits
• North Carolina Small Business and Technology Development Center