What’s the difference between Professional Liability and Errors and Omissions Insurance?

Mar 28, 2022 · 6 minutes to read

Everybody makes mistakes, but even a tiny error can cause big problems. If you’re in the business of providing others with advice, custom products or solutions, you may need insurance coverage that protects against mistakes and other forms of professional wrongdoing.

While searching for coverage, you may have come across Professional Liability and Errors and Omissions insurance. But, which type of policy is right for your business? Are these policies the same, and if so, why the different names?

Let’s answer these common questions by breaking down the differences between Professional Liability vs. Errors and Omissions insurance.

Professional Liability vs Errors and Omissions insurance: Are they the same?

The short answer is: Yes, Professional Liability insurance and Errors and Omissions insurance are the same, and there is no difference in the coverage they provide.

These names are often used interchangeably, though it may be more common to hear one over the other in specific industries. For example, real estate agents and IT professionals are more likely to use “Errors and Omissions” or “E&O” when seeking coverage for professional liability events.

What is Malpractice insurance?

Professional Liability and E&O insurance are the most used names for policies that cover mistakes and other professional offences. However, there is a third name that you may see: Malpractice insurance.

Malpractice insurance is the name typically used in the medical and legal fields. Again, it offers the same types of protections as Professional Liability and E&O insurance, but under a different name.

How Professional Liability insurance can protect your business?

Let’s take a closer look at the protections these policies provide now that we better understand Professional Liability vs. Errors and Omissions insurance.

Professional Liability, E&O, and Malpractice insurance help shield businesses against claims and lawsuits resulting from the services they provide or the products they make. This includes a wide range of events, such as:

  • Mistakes and errors
  • Unintentionally omitting information
  • Missed deadlines
  • Undelivered services
  • Negligence
  • Breaches of contract

Your policy will protect you by covering your legal expenses related to the claim or lawsuit. This includes not just the cost of hiring an attorney but also miscellaneous court costs, settlements, and judgements.

As you can probably imagine, professional liability lawsuits can be very expensive. Few small businesses can afford the costs of defending themselves against these claims, especially since legal action often takes months—or even years—to resolve. Professional Liability, E&O, and Malpractice insurance all remove this burden from your shoulders, helping you stay in business while your claim is settled.

Importantly, these protections apply even if the claim made against you is invalid or without merit.

Professional Liability Claims Example**

Here’s a quick example of Professional Liability insurance in action:

You’re an architect designing a new school. You are unaware that the accessibility requirements for schools recently changed and are now different from other public buildings. The school is cited for code violations, and you must appear in court as the building’s designer. Your Professional Liability insurance will protect you against this negligence claim.

Who needs Professional Liability insurance?

There are many types of businesses and professional service providers who could benefit from the safeguards that Professional Liability insurance provides. We’ve touched on a few of these already regarding E&O coverage and Malpractice insurance:

Other occupations that typically consider a Professional Liability policy include:

If you don’t see your profession listed above, you may be wondering if Professional Liability coverage is right for your business. Generally, if you or your employees do any of the following, you may want to consider getting a policy:

  • Provide others with a professional service
  • Use your specialized knowledge or expertise to give advice or recommendations
  • Design custom solutions or products
  • Represent a client’s interests on their behalf

Is Professional Liability insurance ever required by law?

Some professionals may be required by law to have a minimum level of Professional Liability, E&O, or Malpractice insurance coverage. Certain occupations must show proof of insurance when applying for their professional license in some states. Without a license, you will be unable to legally work in your field.

Always check state and local law to understand the insurance and licensing requirements in your area. If you are a member of a professional association, you may also need to review their membership requirements. They may have additional insurance obligations for their members.

Protect your business with BizInsure

Now that we’ve answered the question “Is E&O the same as Professional Liability?” you might be ready to find a policy that fits your business needs. BizInsure has simplified the process, so busy business owners can quickly find, compare, and buy the policies they need in just minutes.

To compare the difference between Professional Liability and Errors and Omissions policies for your business, simply:

  1. Click here to start comparing quotes.
  2. Choose the policy that fits your business’ needs.
  3. Purchase your policy and instantly receive your certificate of insurance.

From start to finish, you could be covered in just 10 minutes.

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
**The provision of claims examples is for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this webpage is general only.  Coverage for claims on the policy will be determined by the insurer, not BizInsure, and will depend on the specific facts and circumstances involved.

Get Free Online Quotes and get coverage instantly

The coverage you need for your business.

Business insurance is divided into different policies. We offer 4 types so it's easy to design the coverage that fits your business.

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Get a quote

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Get a quote

Love it
Hanna R.
Every year, BizInsure is my go to for general and professional liability insurance! Thenrates are unbeatable.
Calandra K.
The agent was quick and efficient in generating a quote for my needs.
Theresa F.
I enjoy working BizInsure they always answer all my questions and make sure i have the correct coverage for my business.
Prompt and professional service from Biz Insure. Thanks Leslie and Liza!
Bev G.
Very easy to sign up for insurance.
Great company
Brown G.
Fast and efficient!
Kim C.
alireza J.
It was great being able to get a policy that suits my company's need in less than 30 minutes. They were vey thorough. Very competitively priced.
Lynette C.
I worked with Andrea for another start up business. She was very knowledgeable and help me pick the correct policy. Amazed at how quickly the process went.
Representative was very kind, helpful, and educated me well. I appreciated today's prompt service with confirmation that I was satisfied with what was provided to me.
Tina P.
Great company for.your low cost business insurance needs.
constantin T.
Staff was very fessional and friendly. I was able to get a quote and move forward within 20 minutes.
Pebbles S.
Complete C.
Super easy process.
Ashley G.
It’s very easy to understand and at a very reasonable price.
Mary M.
Professionalism, Quality, Responsive and budget friendly
Great rates, easy to understand and select appropriate coverage, can get in a jiffy
Brie C.
I have been a customer of BizInsure for a few years now and I love it. There customer service is awesome and the prices are affordable.
Danyale W.
Quick easy experience! The rep was knowledgeable & pleasant. Customer care was awesome to respond and clarify my concerns.
Kathy Ann A.
bizinsurance makes purchasing Business Insurance...SIMPLE!
Andrea W.
Great quality of Service ,faster and convenience way to pay at most. Thank you for your Service to my Healthcare Facility .
Quick and easy!!!!
Great service! Easy process and very informative representative. Andrea was great and very patience with our process. I would recommend using them!!
Terrance R.
Always and easy process. Thanks!
Gerald S.
Renewal was quick and easy online
Angelita K.
I had a great experience working with Andrea from BizInsure. She was extremely knowledgeable, helpful, and responsive throughout the entire process. She guided me through the different options available and helped me find the perfect home care professional liability insurance policy that suited my needs. Her professionalism and expertise made the entire experience smooth and hassle-free. I highly recommend working with Andrea and BizInsure for all your insurance needs.
Juliette S.
Easy to submit an application and to get quotes
Simone S.
I had the most pleasant prompt and professional experience of my life with Bizinsure. Everything was completed in record time, at an unbelievable cost…and my certificate of Insurance was promptly emailed to me. Most of all it was effective immediately. No hassle no back & forth, just great service highly recommend to all small businesses.
Marcia S.
advanced U.
Great service. Very professional and cordial. Thanks
Jeremiah U.
BizInure has been a great company for our insurance needs. I wish customers services was 24/7, that would make it a five stars
Novilette L. J.
Google Rating
Based on 242 reviews