Professional Liability / E&O - $2M
What this clause says
Errors and Omissions / Professional Liability insurance with a limit of not less than $2,000,000 per claim and in the aggregate, covering Manufacturer's professional services rendered under this Agreement.
What this means in plain English
Coverage for losses caused by professional errors that do not result in bodily injury or property damage.
What it means for a CDMO program
Most CDMOs do NOT need standalone E&O if they only manufacture to spec. Where you DO need it: if you provide formulation development, analytical method development, stability programs, regulatory consulting, or any service where the deliverable is intellectual rather than physical product. CROs almost always need this as a primary coverage.
Carrier notes
The dedicated life-sciences markets write monoline life sciences E&O. Many package programs include it.
How this evaluates
The Decoder applies these rules in order; the first match wins.
- professional liability › limit is at least $2M → Compliant: E&O meets $2M.
- professional liability › limit is not set → Gap: No professional liability indicated - required for CROs and CDMOs offering development services.
See this in your MSA
Map this clause against your sponsor MSA.
Run the DecoderRelated clauses
Common questions about this clause
- What's the difference between products liability and product recall coverage?
- What insurance does a SaMD (software-as-a-medical-device) operator need?
- Does a 503A compounding pharmacy actually need products liability insurance?
- What insurance does a digital health / AI healthtech startup need before fundraising?
- How does a typical sponsor MSA insurance schedule read?