This article originally appeared in Anderson Kill's Policyholder Advisor (March/April 2010).

Professional liability policies (also commonly known as "errors and omission" or "E&O" policies), typically cover claims arising out of any "wrongful act" or "any negligent act, error or omission" in connection with the policyholder's performing a professional service. They also often include an exclusion for some combination of knowing, dishonest, fraudulent, intentional or criminal acts. Insurance companies typically seize upon any allegation of intent or knowledge on the part of their policyholders to avoid coverage.