Innovation Meets Exposure: Rethinking Liability Risk in Professional Services

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By Tom Rea
Executive Vice President, Berkley Service Professionals, a Berkley Company

January 13, 2026

In today’s evolving business landscape, service professionals are expanding their offerings to meet client demands, stay competitive and unlock new revenue streams. Modern technologies like artificial intelligence (AI) and virtual service platforms are accelerating this shift by enabling professionals to broaden their scope and serve clients in new and dynamic ways.

Innovation creates new opportunities, but it also introduces new risks. As service professionals venture beyond their core competencies, they encounter liability exposures that are often hard to identify or fully understand. This shift presents both a challenge and an opportunity for insurance carriers, brokers and the professionals themselves.

Expanding Services, Expanding Risk

The rise of the gig economy was one of the earliest signs of this change. Platforms like Airbnb, Uber and DoorDash created new business models that blurred the lines between personal and professional services. Freelancers stepped in to meet increasing demand, often without fully understanding the potential liability risks involved.

More recently, AI has become the most significant driver of change. Professionals in industries from insurance and real estate to consulting and law are integrating AI tools into their workflows to streamline operations, generate content and offer faster analysis. While this technology promises efficiency, it also introduces liability risk. Many professionals don’t totally comprehend how these tools operate, or how their use might be interpreted by clients. With little legal precedent to draw from, the liability risks are difficult to quantify and even harder to defend against when something goes wrong.

Cybersecurity is another growing concern. IT consultants are increasingly expanding their services to include network security, vulnerability testing and data protection. However, as the cyber threat landscape changes, staying up to date is nearly impossible and even minor oversights can lead to data breaches, system failures or litigation.

Virtual services have also become more prevalent, particularly in sectors like healthcare, finance and marketing. While remote service delivery offers convenience, it also brings a higher risk of miscommunication, misunderstandings and technology failures, any of which can lead to legal disputes or claims.

When professionals begin operating outside their core skill set, they may not recognize the potential pitfalls or regulatory requirements involved. For example, a real estate agent branching into home inspections may not understand all regulatory or technical standards, and a marketing consultant offering crisis communication advice may unknowingly issue statements that expose a client to defamation claims. Their advice, while well-intentioned, can be misunderstood or misapplied by clients. Without a strong understanding of the new service area or a clear framework to guide delivery, they’re more prone to errors, omissions and unmet expectations.

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Respond to Subpoenas with Confidence with Subpoena Assistance Coverage

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By Kevin Marrs
Claims Examiner, Berkley Service Professionals, a Berkley Company

November 5, 2025

Getting served with a subpoena is never on anyone’s wish list. Depending on the individual and their familiarity with the legal system, responses can range from calm compliance to complete panic or ignoring the subpoena entirely.

A subpoena is a court order. It’s how the legal system compels individuals or firms to provide testimony or documents related to a matter in court. And because it’s mandatory, failure to comply can lead to fines, contempt of court charges, or even arrest.

Fortunately, professionals insured with Berkley Service Professionals don’t have to navigate this legal issue alone. Berkley Service Professionals includes subpoena assistance coverage with every professional liability policy. This built-in coverage is designed to help policyholders respond to subpoenas efficiently and correctly without incurring excessive costs or scrambling to find outside counsel.

What is subpoena assistance coverage?

Berkley Service Professionals’ subpoena assistance coverage is a dedicated sublimit that sits on top of the professional liability policy’s regular limits of liability. It is not subject to the insured’s deductible, meaning there’s no out-of-pocket expense to the policyholder for using it.

When a policyholder reports a subpoena, Berkley Service Professionals’ claims team will review it to confirm that it pertains to a matter that would be covered under the Policy if a Claim were to be presented, and, if necessary, Berkley will retain vetted panel counsel — experienced attorneys who specialize in professional liability insurance matters, often with industry-specific expertise — to guide the response. These attorneys work at pre-approved rates, helping policyholders avoid the burden of excessive legal fees.

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How Berkley Service Professionals Helped a Broker Turn a Crisis into a Long-Term Success

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By Tom Rea
Executive Vice President, Berkley Service Professionals, a Berkley Company

August 12, 2025

Success in excess and surplus (E&S) lines insurance is not only about having the most competitive pricing or the broadest coverage. It’s also about partnership, problem-solving and putting in the work when the stakes are high. Berkley Service Professionals is built around these values.

Here’s how we helped one broker rescue a key client after a seven-figure loss and why brokers continue to count on us for fast, reliable solutions to their most complex errors and omissions (E&O) challenges.

A Broker in Crisis

The broker’s client was a seasoned insurance professional who experienced a single, substantial claim under the agency’s E&O policy. Ultimately, the agency received a non-renewal notice, and their broker had to approach the market for a new solution.

The broker worked hard to find the same $5 million coverage limit, but most markets either declined the risk or provided only retro-inception coverage, leaving the client without prior acts protection. With the expiration date just weeks away, the broker asked for help from Berkley Service Professionals.

A Collaborative Process

We reviewed the seven-figure claim details with the broker and saw it for what it was: an unfortunate, isolated incident at an otherwise well-run insurance agency with no prior claims.

To confirm that understanding, our underwriting team arranged a call with the insured’s leadership, general counsel, and producers. This gave them the chance to explain what had happened and to share the safeguards they had put in place to prevent future claims.

This conversation showed a level of professionalism, transparency, and proactive risk management that gave our underwriters the confidence to take on the risk. We offered the full $5 million policy the client needed, including prior acts coverage. Two years later, we’re still on the account, and the relationship with the broker is stronger than ever.

Why Brokers Choose Berkley Service Professionals

This example shows the value we provide to brokers through our extensive underwriting insight, engagement and speed of service.

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Understanding Claims Reporting: Empowering Brokers for Success

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May 7, 2025

When it comes to helping your client navigate professional liability insurance, it’s essential to be well-versed in all the aspects of the policy including when to contact the carrier and how to report a claim. Whether your client is in Real Estate Services, Insurance Services, or other service industries, knowing the ins and outs of the policy can help your client better understand their coverage and how the policy responds to various incidents that may occur. While it may seem simple, there are nuances to even the basics of a professional liability insurance policy. You’ll be prepared with answers if your client asks the following questions.

When should you or your client contact the carrier?

In addition to reporting a claim, there are several reasons you or your client may need to contact us, such as:

  • Changes to the ownership structure of a firm
  • Acquisitions/mergers
  • Changes to services performed (adding or removing services)
  • Requests for changes in coverage, such as a policy enhancement or exclusion.

What do I do when my client lets me know that they have a claim?

At Berkley Service Professionals, we encourage you to promptly report any claims, potential claims, notices of subpoena, or requests for documentation from a law firm. Doing so will benefit your client and enable the carrier to manage the claim proactively.

It also helps to have something reported earlier so that your client does not admit liability or agree to pay without the carrier’s consent.

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Knowing the Policy Helps Brokers Provide Top-Notch Service

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By Tom Rea
Executive Vice President, Berkley Service Professionals, a Berkley Company

January 22, 2025

As an insurance professional, it’s vital to have a good understanding of professional liability insurance policies. It’s especially important to know what the policy covers and how it responds to various incidents that may occur. Whether your client works in real estate services, insurance services or other service industries, you can provide better assistance if you are well-versed in the nuances of professional liability insurance policies. To prepare yourself for any questions your client may have, it’s important to know who qualifies as an insured, what professional services are covered, what endorsements are needed and what exclusions are in the policy.

Who is an Insured?

For Berkley Service Professionals’ Professional Liability policies, an insured typically is the Insured Organization, which means any named insured designated on the policy declaration, and any subsidiary, which is generally defined as an entity in which the named Insured owns more than 50% interest.

In addition, an independent contractor and an employee are both considered insureds, but only for services performed on behalf of the organization. Other individuals who may qualify as insureds include a partner, principal, officer, director, shareholder, managers, and members, but only for services performed on behalf of the organization.

Finally, named insureds and additional insureds may be added via endorsements to the policy. If you have any questions, always refer to the policy for specific and complete definitions and speak with an underwriter for additional clarification.

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