/ BLOG

What is Errors & Omissions (E&O) Insurance and Who Needs it?

Oct 25, 2021 · 5 minutes to read

In business anything can happen, including accidents and mistakes. Even the most careful small business owners can experience them. While you may be able to salvage the situation before it impacts your client, this may not always be the case.

Errors and Omissions (E&O) Insurance Policy

That’s where Errors and Omissions insurance could help. These policies are designed to shield professionals against common legal claims that can have devastating financial consequences, especially for small businesses.

What is Errors & Omission insurance?

Also known as Professional Liability insurance, an Errors and Omissions (E&O) insurance policy protects your business against claims of negligence, misrepresentations, or mistakes. Clients typically make Errors and Omissions claims when they have suffered a financial loss of damage as a result of your services, products or employees.

It’s not uncommon for clients to sue businesses over lost revenue, alleged negligence, or bad advice. These lawsuits can be expensive, and the results are often financially devastating for small business owners. E&O business insurance can help protect your revenue and professional reputation against these and other common liability claims you may face.

Who needs Errors & Omissions insurance?

Errors and Omissions insurance can benefit a wide variety of occupations, from architects to personal trainers. It’s also frequently purchased by engineers, accountants, consultants, real estate agents, event planners, lawyers, and notary publics—just to name a few.

As you can probably tell, a lot of small business owners may need Errors and Omissions insurance! However, you might be unsure if E&O insurance coverage is something you should consider for your business. It may help to ask yourself these questions:

  • Do you provide clients or customers with advice based on your professional knowledge and expertise?
  • Does your business design custom solutions for clients or customers?
  • Do you offer a professional service?
  • Do you represent your client’s and customer’s interests on their behalf?
  • Do your employees perform any of the above tasks?

If you answered yes to one or more of the above questions, then E&O business insurance might be worth considering to protect your small business.

What does Errors & Omissions insurance cover?

Now that you better understand what Errors and Omissions insurance is, you might be wondering exactly what a policy can cover. Here are some of the most common claims that are generally included in E&O insurance coverage:

1. Financial Losses

One of the most frequent claims made against Errors and Omissions policies is that of financial loss. Clients or customers may allege that the service, advice, or recommendation you provided caused them to lose money. If you are found liable, the client would be awarded compensation for their claim.

Your E&O insurance coverage would cover this compensation, including if you are ordered to pay a settlement or judgement by the courts. It also covers your legal expenses, such as attorney’s fees and other court costs, relating to the case.

2. Personal Injury and Damages

Errors and Omissions insurance can also provide coverage for non-monetary claims. This can protect your business from allegations of slander or libel, as well as clients seeking compensation for emotional distress, pain, or suffering. The damage done to someone’s reputation can be difficult to put a dollar amount on, especially as it can take years to repair the harm that has been done.

This coverage should not be confused with General Liability insurance, which protects your business against third-party claims of physical injury.

3. Alleged or Actual Negligence

Professionals are often held to a high standard, both individually and compared to others in their industry or occupation. If a client doesn’t feel that you’ve met these requirements, they may make a negligence claim against you.

Claims of negligence can sometimes be subjective. You may have acted professionally, but the client might feel differently. Thankfully, Errors and Omissions insurance will protect you whether a claim has merit or not. Defending yourself against a baseless claim can be just as expensive as one that is justified. E&O business insurance can help ensure that a false accusation doesn’t put you out of business.

4. Copyright Infringement

Most companies and individuals are protective of their intellectual property. Using copyrighted work without the copyright holder’s permission could result in a lawsuit, even if it was an honest mistake. Many Errors and Omissions insurance policies will provide protection for these types of claims.

Related: What does Professional Liability insurance cover?

Errors & Omissions insurance for your small business

Protecting yourself and small business against common liability claims is important. Errors and Omissions insurance is one way to do this. A policy can provide compensation to your clients and cover your legal fees for court cases resulting from the professional services you’ve provided. Importantly, it can also give you the peace of mind to continuing working with confidence.

BizInsure can help you find an Errors and Omissions insurance policy for your small business. Call us today to receive quotes from leading insurers.

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

Friendly and very fast service!
Patricia S.
1713020220
Jennifer Whiscombe, is an amazing agent. She was very knowledgeable, thorough and friendly. I highly recommend.
Ebony D.
1712939806
They make it very easy to buy insurance and renew.
Bill N.
1712763118
As a business owner I love not wasting time. Thank you so much for giving me more time
mario S.
1712678018
Very straight forward, the cost of coverage amount made sense, simplicity was appreciated.
Jean H.
1712557699
Always easy. Thank you.
Dave C.
1711734978
A Company that is easy to deal with and that I have used for several years. I appreciate the continued support.
Sam M.
1711718774
Very easy and affordable!
Volanda H.
1711024298
Very easy to work with, cost effective, prompt renewal and easy to get certificates of insurance instantly. I use them exclusively for my professional and general liability insurance needs as a consultant.
Larry (.
1710956598
Responsive and professionalCompetitive price. I highly recommend Bizlnsure as an insurance provider
Zynab B.
1710433556
Your service is easy to renew as needed and your company informs the client in advance for renewal.
Henry B.
1710352389
It has been a pleasure doing business with Biz Insure Llc.Their representatives are very courteous, helpful and customer service oriented.
Shonta I.
1710297732
Quick and easy....
Tammy K.
1710172643
I follow the instructions & would prefer to paid every month. I did not have the options to pay every month.
Alamo H.
1709935830
Thank you, Amy, for making my experience enjoyable and funny. Thank you so much for your kindness!!!
George J.
1709840615
I'm pleased with the business quote I received from Bizinsure LLC. Thank You!
Shanda J.
1709586997
Very satisfied with the online experience
Nicole h
1709238653
Been a happy customer for years! Easiest company to receive a quote and get insured. No hassles! Easy payment! Finance plans, if needed!
jodi H.
1709226367
Love it
Hanna R.
1708272180
Every year, BizInsure is my go to for general and professional liability insurance! Thenrates are unbeatable.
Calandra K.
1708044666
The agent was quick and efficient in generating a quote for my needs.
Theresa F.
1707895796
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.
1707524454
Very easy to sign up for insurance.
Great company
Brown G.
1706896003
Fast and efficient!
Kim C.
1706746693
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.
1706621476
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.
1706224051
Great company for.your low cost business insurance needs.
constantin T.
1706156911
Staff was very fessional and friendly. I was able to get a quote and move forward within 20 minutes.
Pebbles S.
1706126428
Wonderful
Complete C.
1705788054
MUY BUENO
Super easy process.
Ashley G.
1704830227
It’s very easy to understand and at a very reasonable price.
Mary M.
1703780096
Professionalism, Quality, Responsive and budget friendly
B D
1703029371
Great rates, easy to understand and select appropriate coverage, can get in a jiffy
Brie C.
1702775397
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.
1702132165
Quick easy experience! The rep was knowledgeable & pleasant. Customer care was awesome to respond and clarify my concerns.
Kathy Ann A.
1702059151
js_loader
Google Rating
4.7
Based on 262 reviews
×
js_loader