Professional Services in a Contractor E&O policy refers to the specific services listed in your insurance policy that are covered in the event of a claim. These are the services you are insured to perform, as recognized by your policy.

Imagine you run a roofing company, and your insurance policy lists roofing services under 'Professional Services.' One day, you decide to take up a fencing project, believing it's a minor stretch from your usual work. Unfortunately, there's an issue, and the client filed a claim. Since fencing is not listed under your 'Professional Services,' your insurance policy won't cover this claim. This scenario highlights the importance of knowing exactly what your policy covers.

Understanding this aspect of your E&O insurance is crucial. It ensures you're aware of the boundaries of your coverage and helps in mitigating risks that could impact your business financially.