Does Professional Liability Cover Breach of Contract?
Only partly: it covers a contract claim that really alleges negligent work, but many policies exclude liability you took on only through the contract, such as guarantees.
Only partly. If a client's breach-of-contract claim really alleges that your work was negligent, professional liability can respond to that part. What it typically won't cover is liability you took on only because the contract says so, such as a guarantee of results.
Hiscox's sample policy excludes some liability assumed only by contract, and The Hartford says many E&O policies exclude contract breaches. Clients often plead both theories in one lawsuit, so the negligence part may be defended while the pure contract promise isn't.
Before you sign a client contract, compare its indemnity, service-level and guarantee clauses with your policy's contract and warranty exclusions. A certificate of insurance doesn't change the policy wording, however your client reads it.
Coverage Guides Related to Professional Liability, E&O and Tech E&O
Sources for Professional Liability, E&O and Tech E&O Answers
- FAQ: Professional liability insurance. Texas Department of Insurance; What’s professional liability coverage?; What types of damages…; What’s general liability insurance?; Do I need professional liability… if I have general liability…?; Is professional liability insurance required?; Can a client require…?; What’s the difference between occurrence policies and claims-made policies. Accessed 2026-09-25.
- Professional Liability – US Direct Errors and Omissions Insurance. Hiscox Inc. specimen; About this Policy / Coverage for Claims Made Against You; I.A Insuring Agreement; I.B Defense; I.C Settlement; II.A Notice of Claims; II.C Optional Extended Reporting Period; III.A, III.K, III.M, III.R, III.S Exclusions; IV.A–B Limits and Deductible; VI.O Professional Services; VI.U Wrongful Act. Accessed 2026-09-25.
- Technology Errors and Omissions Insurance. The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.