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By Edita Abrudeanu, Founder & Principal Broker — Professional Insurance Experts, LLC
Why You Should Never Add Clients to Your Professional Liability Policy
The “nice” gesture that could cost you everything
Every week, someone asks me:
“Can we just add the project owner as an additional insured on our E&O policy? The contract requires it.”
It sounds harmless — even smart.
But here’s the truth: that one change could destroy your protection.
01. E&O Isn’t Like General Liability
General Liability policies are built for adding third parties. Professional Liability (E&O) isn’t.
When you try to add a client, you’re essentially saying, “Let’s share my coverage for their mistakes.”
That means:
- Your deductible could trigger for their negligence.
- Your limits could be drained by their claim.
- And if they ever sue you? Your insurer won’t cover it — because the “insured vs. insured” exclusion kicks in.
It’s like giving someone the keys to your car, then finding out your insurance won’t cover the crash.
02. Why Carriers Refuse
Most carriers simply say no.
Not because they’re difficult — but because clients aren’t performing professional services. They can’t legally qualify as “insureds.”
In short: your client isn’t the professional; you are.
Your policy is designed to protect you when your professional judgment is questioned — not them.
03. What to Do Instead
If a contract demands the owner be “added to your E&O,” negotiate the language.
Request a certificate of insurance instead. It proves coverage without extending your policy’s protection to them.
Or ask your broker for wording like:
“Evidence of professional liability insurance maintained by the insured.”
That satisfies most contract requirements without exposing you to unnecessary risk.
04. The Bottom Line
Adding your client to your E&O sounds like a goodwill gesture.
In reality, it’s one of the fastest ways to lose coverage when you need it most.
Protect yourself first — that’s what your client is hiring you to do anyway.
Ready to Make Sure Your Coverage
Actually Protects You?
Let’s review your policy and uncover any gaps before they become problems.