Errors and Omissions Insurance

What E&O covers

• Defense costs — legal fees and expenses, even when the claim is groundless.
• Settlements and judgments — up to the policy limit.
• Negligence claims — when your professional work fell short of standard practice.
• Errors and omissions — mistakes, oversights, and missing details in deliverables.
• Breach of professional duty — failure to meet a contractual professional obligation.
• Personal injury (limited) — libel, slander, copyright infringement related to your professional work.

Industries that need E&O

• Real estate brokers and agents
• Insurance agents and brokers
• Financial advisors and registered representatives
• Consultants
• Accountants, bookkeepers, and tax preparers
• Architects, engineers, and designers
• Paralegals and legal-service businesses (where state-permitted)
• IT services, MSPs, and software developers (often called PL but functionally E&O)

E&O vs PL terminology

E&O and professional liability are functionally the same coverage. The terminology splits along industry lines: licensed-profession contexts (real estate, insurance, financial advisory) use E&O; other service businesses (consultants, IT) use professional liability. The policy structure is identical.

Claims-made structure

E&O is almost always claims-made: the policy responds to claims first reported during the policy period for incidents on or after the retroactive date. When you switch carriers, you typically want the new policy to honor your prior retroactive date so historical work is still covered. We confirm prior-acts coverage during every quote so there is no gap on your historical practice.

Common claim examples

• Real estate agent failed to disclose a material defect
• Insurance agent did not bind the coverage the client requested
• Financial advisor recommended an unsuitable investment
• Accountant missed a deadline that resulted in client penalty
• Consultant's recommendation produced a documented financial loss

Frequently asked questions