Errors and omissions insurance (E&O) is a type of professional liability insurance that protects a business from customer claims of negligence or inadequate work related to its professional advice and services.
An E&O policy can cover legal fees and settlement costs associated with these claims, even if a mistake wasn’t made. Real estate agents, home inspectors, consultants, and other professionals who sell a service might need this coverage.
E&O insurance cost varies among businesses and depends on several factors. Your business class, coverage needs, number of clients, state, and more can affect your rate. Insurers will ask questions about these features when you get an errors and omissions insurance quote.
The most accurate way to find out exactly how much you’ll pay for errors and omissions insurance is to get a quote. Simply start a quote online or call us to speak with a licensed agent who can help you customize an E&O policy to fit your needs and budget.
Errors and omissions insurance covers the legal fees and settlement costs that result from claims of negligence or substandard work against your business. It protects your business if a client feels your professional work didn’t meet their expectations or caused them financial harm, whether or not you made a mistake.
For example, a consultant gives incorrect advice that causes a client to lose money. As a result, the customer decides to sue for damages. E&O insurance could cover the consultant’s mistake and associated legal fees.
E&O insurance coverage includes protection for claims of vicarious liability that arise from the actions of your employees and contractors. It can also offer coverage for claims from services provided in the past and work performed anywhere in the world.
E&O insurance can protect against a variety of claims, but it doesn’t cover everything. Get a quote to learn which types of insurance are best for your business.
In addition, business partners and licensing boards may require errors and omissions insurance by contract.
Anyone can sue your business if they feel they have suffered a loss due to your services — actual or perceived. For example, a client could sue a real estate agent if they feel they lost a property acquisition because of the agent's mismanagement. E&O coverage could help pay for the realtor’s settlement costs.
Protect your business against claims of professional negligence by getting an errors and omissions insurance quote. Our insurance experts can answer your questions and help you find coverage that meets your needs. Call us directly or start a quote online.