Protect your reputation.
Defend your expertise.
Even the best professionals make mistakes. Errors & Omissions (E&O) insurance covers the devastating legal fees and settlements if a client claims your advice or services caused them financial harm.
- Fulfills strict vendor contract requirements for B2B services.
- Pays for defense attorneys, even if the lawsuit is entirely frivolous.
- Standard General Liability completely excludes professional negligence.
Negligence & Mistakes
If a typo in your code, an error in your tax filing, or bad marketing advice costs your client money, E&O covers the resulting damages.
Missed Deadlines & Delays
When a project delay causes your client to miss a major product launch or lose revenue, they can sue you for breach of contract. We cover the defense.
Legal Defense Fees
Even if a client's lawsuit is baseless, defending yourself can cost tens of thousands of dollars. E&O provides the specialized attorneys needed to win.
Get Your E&O Quote
Compare professional liability rates tailored to your specific industry. Zero obligation.
What Exactly Does E&O Cover?
If your business provides a service, advice, or relies on your professional expertise, your General Liability policy is not enough. You are exposed to financial-loss lawsuits.
Errors & Oversights
An architect miscalculates a load bearing wall, an accountant misfiles a tax return, or a tech agency deploys buggy code. Covers the cost of the mistake.
Failure to Deliver
If you promise a specific result in your proposal—like a 20% increase in leads or a fully functional app by Q3—and fail to deliver, clients can sue for lost projected revenue.
Breach of Contract
Disputes over Scope of Work (SOW) are incredibly common. If a client alleges you breached your contract by cutting corners, E&O provides the legal defense.
Frivolous Lawsuits
Even if you did absolutely everything right, a dissatisfied client can still drag you into court. E&O pays the attorney fees to get the case thrown out.
Litigation Risk & Defense Estimator
Lawsuits against professional service firms average over $100,000 in defense costs alone. Estimate your exposure versus the highly affordable cost of a monthly premium.
Firm Profile
Premiums scale with the volume of services rendered.
Larger contracts equal higher lawsuit damage demands.
Risk vs. Protection Cost
Est. Lawsuit Exposure
$125k
Legal Defense + Settlement
Est. Monthly Premium
To completely transfer the risk
A dissatisfied client suing over a $25,000 contract can easily cost your firm $125,000 in attorney fees and damages. Transfer this massive liability to a carrier for roughly $3 a day.
*Educational tool. Lawsuit exposure assumes base defense costs ($50k-$100k) plus a multiplier of the contract size. Premiums are illustrative averages; actual rates depend heavily on exact business class, claims history, and coverage limits (e.g., $1M/$2M).
Stop Assuming You're Covered
Many professionals buy a cheap General Liability policy to satisfy a landlord, falsely assuming it covers their advice. It absolutely does not.
| Coverage Scenario | Errors & Omissions | General Liability | Cyber Insurance |
|---|---|---|---|
| Bad advice costs client $50k | Covered | Explicitly Excluded | Not Covered |
| Missed deadline breaks contract | Covered | Excluded | Not Covered |
| Client trips over wire in your office | Not Covered | Covered | Not Covered |
| Hackers steal client SSNs | Often Excluded | Not Covered | Covered |
Do You Actually Need It?
If your business relies on brainpower rather than physical labor, you hold professional liability risk. You need E&O if you:
Provide Expert Advice
Consultants, marketers, financial planners, and brokers. If clients make financial decisions based on what you say, you can be sued if they lose money.
Sign B2B Contracts
Working with enterprise clients or government agencies? Their vendor agreements will explicitly require you to carry $1M+ in Professional Liability before you can start work.
Provide Technical Services
IT consultants, software developers, and engineers. If your tech fails and takes down a client's operations, they will look to you for financial recovery.
Professional Liability FAQs
Executive answers to keep your firm legally protected.
Is Professional Liability the same as Errors & Omissions?
Yes, they are the exact same thing. The terminology just changes based on the industry. Doctors use "Medical Malpractice," lawyers use "Professional Liability," and consultants/tech firms typically use "Errors & Omissions (E&O)."
What is a "Claims-Made" policy?
Most E&O policies are "Claims-Made." This means the insurance policy must be active *both* when the mistake happened AND when the lawsuit is filed. If you cancel your policy and a client sues you a month later for past work, you are not covered. This makes maintaining continuous coverage critical.
Does E&O cover cyber attacks or data breaches?
Traditionally, no. While E&O covers a mistake in your software coding that causes a client's site to crash, it usually will NOT cover the costs if hackers steal your clients' sensitive data. For that, you need to add a Cyber Liability policy (though they are frequently bundled together for tech firms).