Errors & Omissions Insurance
Protect your business from claims of mistakes, negligence, or failure to deliver promised services with comprehensive E&O coverage.
What is E&O Insurance?
Errors and Omissions (E&O) insurance, also known as professional liability insurance, protects your business when clients claim you made mistakes in your professional services or failed to deliver what you promised.
Even the most diligent professionals can face claims of negligence or inadequate work. E&O insurance provides financial protection and legal defense when clients allege that your services caused them financial harm.
What Does E&O Insurance Cover?
Professional Mistakes
Coverage for errors, oversights, or mistakes made while performing professional services for clients.
Failure to Deliver Services
Protection when clients claim you didn't complete work as promised or failed to meet deadlines.
Negligence Claims
Defense against allegations that you didn't exercise reasonable care in providing your services.
Legal Defense & Settlements
Covers attorney fees, court costs, and settlement amounts even if you didn't do anything wrong.
Who Needs E&O Insurance?
E&O insurance is essential for service-based businesses and professionals who provide advice or expertise:
Common E&O Claims Examples
Web Developer
A developer's code contains a bug that causes the client's e-commerce site to lose sales for three days. The client sues for lost revenue. E&O insurance covers the claim.
Marketing Agency
An agency's campaign doesn't generate the promised results. The client claims breach of contract and demands a refund plus damages. Legal defense costs are covered.
IT Consultant
A consultant recommends a security system that fails to prevent a data breach. The client sues for negligent advice. E&O insurance helps cover the settlement.
E&O vs. General Liability
E&O Insurance Covers
- ✓Professional mistakes
- ✓Failure to deliver services
- ✓Negligent advice
- ✓Client financial losses
General Liability Covers
- ✓Bodily injury
- ✓Property damage
- ✓Personal injury
- ✓Advertising injury
Bottom line: Many businesses need both types of coverage for complete protection.
Cost & Coverage Limits
E&O insurance premiums depend on several factors:
- •Industry: Tech and consulting face different risks than photographers
- •Annual revenue: Higher revenue typically means higher premiums
- •Coverage limits: Common limits range from $500K to $5M
- •Deductible amount: Higher deductibles lower premiums
$500 - $3,000/year
Typical cost for small service businesses with $1M coverage
What's NOT Covered
E&O insurance typically excludes:
- ×Intentional wrongdoing or fraud
- ×Bodily injury and property damage (need general liability)
- ×Employment-related claims (need EPLI)
- ×Data breaches and cyber attacks (need cyber liability)
- ×Known problems that existed before coverage started
Get Your Quote
Compare E&O insurance rates from leading providers and protect your business today.
What coverage level do you need?
Choose the protection that matches your requirements