What’s next? 3 professional liability trends for 2025

AI is no longer an innovative concept—it’s here, with AI-powered tools being embedded into the everyday operations of businesses across industries. From streamlining administration and resource allocation to enhancing efficiency and leveraging generative AI designs, technology innovation is revolutionizing how the professional services sector operates. But with this rapid adoption comes a host of risks.

As AI and other advanced technologies take on greater roles in core business functions, expect errors and omissions (E&O) risks to keep evolving. Across a range of sectors, the increasing use of AI and tech tools in service delivery is introducing new risks, from algorithm errors to data breaches, that weren’t even on the radar a decade ago. A misguided AI-generated recommendation could snowball into significant financial and reputational damage. Then there’s the risk of bodily injury if an AI-powered tool fails, as well as regulatory concerns, particularly when it comes to intellectual property (IP) infringement and breach of contract.

Professional services firms are facing a wave of change as E&O risks and requirements expand. Across a range of sectors, clients are demanding stricter contractual terms, including mandatory E&O insurance coverage, as they seek reassurance against potential negligence, errors, or contract breaches.

In response, businesses must adapt to meet these rising expectations. Whether driven by regulatory bodies, professional associations, or industry benchmarks, compliance with these requirements is becoming critical. E&O insurance is no longer just a “nice to have, but a strategic necessity for firms aiming to stay competitive and build lasting trust with their clients. 

Cybercrime doesn’t just impact global tech organizations—it’s infiltrating industries like professional services, construction, and manufacturing, where the stakes are just as high. With the rise of electronic payment methods, scams like fund transfer fraud are now a top source of cyber claims. These attacks often involve hacking into accounts, impersonating trusted contacts through social engineering or phishing emails designed to look alarmingly real. And once payments are transferred, they vanish into other accounts, with banks rarely able to step in and recover the losses. What’s more, ransomware continues to be a major threat, accounting for more than 70% of cyber claims costs. Imagine a ransomware attack locking you out of emails and payment systems, or a data breach leaking client information; the potential for disruption is enormous.

One of the smartest ways of tackling this growing threat is with cyber cover, whether added to your professional liability package or as a standalone policy. Comprehensive cyber insurance doesn’t just provide financial protection—it also supports businesses in navigating the chaos of an attack, from incident response to recovery.