Errors and Omissions Insurance

Errors and omissions insurance (E&O), often referred to as professional liability insurance, protects your business in the event you're found legally liable for faulty advice or negligence related to a professional service.

Who needs E&O insurance ?

Generally, any business which offers advice or provides a service needs an errors and omissions policy. Occupations that require E&O insurance typically include:

  • Consultants
  • Real estate agents
  • Insurance agents
  • Lawyers
  • Accountants
  • Engineers
  • Architects

In addition, business partners and licensing boards may require errors and omissions insurance by contract.

Ultimately, anyone can sue your business if they feel they have suffered a loss due to your services—actual or perceived. For example, a real estate agent could get sued by a client who feels the loss of a property acquisition was a direct result of the agent's mismanagement. Making sure your business is protected in these instances may prevent financial hardship.

Types of E&O Coverage

A variety of E&O coverages are available for small businesses, including :

  • Negligence - Protects a business against actual or alleged errors and omissions when providing a professional service, such as giving incorrect advice, an omission, or failing to deliver a service.
  • Defense costs - Provides legal defense when a covered claim is reported.
  • Copyright infringement - Coverage for damages or claims expenses for copyright infringement. E&O insurance can also offer coverage for claims from services provided in the past and work performed anywhere in the world