Quick answer
Errors and omissions (professional liability) insurance pays to defend and settle claims that your advice or professional work caused a client financial loss, even when the claim is groundless. Consultants, real estate and design professionals, technology firms and many contractors carry it. Most E&O policies are claims-made, so the retroactive date and continuous coverage matter when you change carriers.
Coverage Overview
Even a mistake you didn't make can cost real money to defend - Errors & Omissions coverage is built around that fact, not just around admitted fault.
What E&O coverage typically includes
- Legal defense costs if a client claims your advice, service, or work caused them a financial loss
- Settlement or judgment costs if the claim is found valid
- Coverage that responds even when a claim turns out to be unfounded, since defense costs are owed either way
Carriers we compare
We place professional liability coverage through Hiscox, built for small and mid-sized service businesses, with access to wholesale and excess & surplus markets through Ryan Specialty for harder-to-place professional risk.
Errors & Omissions Insurance FAQ
Who actually needs E&O insurance?
Any business that gives advice, provides a professional service, or performs specialized work where a client could claim financial harm from a mistake - consultants, agents, contractors, and technology providers are common examples, but it applies broadly.
What's the difference between "claims-made" and "occurrence" E&O policies?
A claims-made policy only covers claims filed while the policy is active (or during an extended reporting period after it ends); an occurrence policy covers incidents that happened during the policy period, no matter when the claim is filed later. Most E&O policies are written claims-made, which matters if you ever switch carriers or close the business.
Does general liability cover professional mistakes?
No - general liability covers third-party bodily injury and property damage, not financial loss from professional advice or service errors. That's specifically what E&O exists to cover.
What it usually doesn't cover
- Bodily injury and property damage. General liability insurance →
- Claims from work done before the policy's retroactive date.
- Fraud and intentional wrongdoing.
- Data breach costs. Cyber liability insurance →
Every policy is different. Your declarations page and policy form decide what's covered.
Have this ready before you ask for a quote
- Services you provide, and your licenses or certifications
- Annual revenue and largest client contracts
- Sample client contract, if it sets insurance requirements
- Current or prior E&O policy and its retroactive date
- Any claims or disputes in the last five years
Don't have everything? Send what you have; an agent will ask for the rest. Coverage can't be bound or changed through this website.