Emerging E&O Risks: Insights from the PLUS E&O Think Tank

The PLUS E&O Think Tank identified several emerging trends and evolving risks shaping the Errors & Omissions (E&O) and professional liability landscape. Discussions focused on how changing technologies, expanding contractual requirements, regulatory scrutiny, and increasingly complex industry exposures are creating new challenges for insurers, brokers, claims professionals, attorneys, and risk managers.

Industry-Specific Risks Are Increasing E&O Complexity

One major area of focus was the growing complexity of E&O exposures across industry verticals such as real estate, construction, healthcare, and life sciences. Participants noted that these sectors often involve highly specialized services, layered contractual obligations, and significant financial stakes, increasing the likelihood of placement errors, disputes over professional responsibilities, and complex claims. Real estate and construction, in particular, were highlighted as industries where rapid project growth, multiple stakeholders, and evolving project delivery methods can create substantial professional liability concerns.

Contractual Requirements Are Expanding Miscellaneous E&O Demand

The group also discussed the continued expansion of miscellaneous E&O coverage. Increasingly, businesses that historically may not have carried professional liability insurance are now being required to obtain coverage due to contractual obligations imposed by clients, vendors, lenders, or project owners. This trend is driving higher limits purchases and creating a greater need for education around what E&O policies do—and do not—cover. As coverage demand expands into new industries and professions, underwriters and brokers must carefully evaluate evolving operational risks and policy language.

AI and Technology Are Reshaping Professional Liability Risk

Technology and artificial intelligence emerged as another significant topic. Participants explored how AI-driven services and automation are changing professional services exposures and raising difficult coverage questions. Discussions included whether E&O policies respond to AI-generated errors, how carriers are approaching AI exclusions, and whether insureds are beginning to request affirmative AI coverage. The Think Tank also noted that the lines between technology E&O, cyber liability, and traditional professional liability policies are becoming increasingly blurred as companies rely more heavily on interconnected digital systems and automated decision-making tools.

Regulatory and Privacy Claims Are Creating Coverage Uncertainty

Regulatory and privacy-related exposures were also identified as key concerns. The group discussed how state-level consumer protection statutes, privacy regulations, and regulatory investigations are increasingly driving claims activity. High-profile matters involving companies such as McKinsey & Company and Purdue Pharma were referenced as examples of how regulatory scrutiny and public policy issues can create overlapping E&O, D&O, and professional liability concerns. Participants emphasized the difficulty in distinguishing which policies should respond to certain regulatory actions and defense costs.

Blended Coverages Are Creating New Underwriting Challenges

Another important discussion centered on blended coverages and underwriting challenges. As insurers increasingly combine E&O, cyber, media liability, and pollution-related exposures into broader policies, participants raised concerns about whether underwriting practices and policy definitions are keeping pace with the complexity of these risks. The group noted that underwriters may need a deeper understanding of environmental and pollution-related exposures, particularly when those risks intersect with professional services and infrastructure projects.

Data Center Growth Is Creating Sophisticated Liability Risks

The rapid growth of data centers and large-scale infrastructure projects was also identified as an emerging exposure area. Participants discussed risks associated with power supply, cooling systems, construction delays, liquidated damages provisions, and business interruption exposures tied to these projects. As demand for AI infrastructure and cloud computing expands, these projects present increasingly sophisticated contractual and operational liability risks that can trigger E&O, cyber, and construction-related claims.

Emerging E&O Trends Require Broader Professional Liability Awareness

These topics matter to professional liability insurance professionals because they highlight how E&O exposures are rapidly evolving beyond traditional professional services risks. Underwriters must assess increasingly complex operational, technological, and contractual exposures. Brokers need to understand how blended coverages and emerging risks impact policy placement and client education. Claims professionals must navigate overlapping policy triggers, regulatory investigations, and novel liability theories. Attorneys and risk managers must monitor evolving regulations, AI developments, and contractual obligations that could significantly expand liability exposure. Collectively, these trends underscore the importance of staying informed about emerging industries, changing legal frameworks, and the growing convergence of professional liability, cyber, regulatory, and technology-related risks.

Thank you to the PLUS E&O Think Tank for their continued insights that help shape the content PLUS provides throughout the year.

• Michelle Aliperti, AXA XL
• Kelli Artin, RPLU, CPLP, Great American
• Stephen Cavallaro, Professional Risk Facilities, Inc.
• Kaitlyn Dudzinski, RPLU, Westfield Speciality
• Hubert Eisdell, HDI UK & Ireland
• Jenny Finet, RPLU+, CRC
• Tracy Gaudet, Economical Insurance
• Dana Gittleman, Marshall Dennehey
• Jeffrey Karcz, ARC Excess & Surplus
• Cathy Kuehl, Lemme Insurance
• Jonathan Kurens, Marsh
• Pauline Morley, AXIS Capitial
• Jon Schildt, RPLU, HUB
• Genni Stewart, RPLU, Hanover Insurance
• Laura Zaroski, RPLU, Arthur J. Gallagher & Co

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