Errors and Omissions Insurance

Liability protection for advice and services

Protect your business from costly mistakes

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
  • Financial advisors
  • 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.

Errors and omissions insurance cost

Several factors play a role in determining the cost of your errors and omissions insurance, including:

  • Business type
  • Location
  • Selected coverage limits
  • Number of employees

For example, a business with a handful of employees will typically have more exposure than a business without any employees, and therefore can expect to pay a higher premium.

Allow us to tailor a policy that protects your business from professional errors and liability exposure. You can start a quote online, or call us to speak with a licensed professional.

More information