What is errors and omissions insurance and who needs it?

Errors and omissions (E&O) insurance — also called professional liability insurance — protects businesses and individuals from claims that their professional services caused a client financial harm. It's one of the most important coverages for any professional services firm, and one that's often overlooked until a claim arrives.

What does E&O insurance cover?

E&O covers claims arising from:

• Negligence — failing to perform services to a professional standard
• Errors — mistakes in your work product, advice, or deliverables
• Omissions — failing to do something you should have done
• Misrepresentation — providing inaccurate information that a client relied on
• Defense costs — attorney fees and legal expenses even if no wrongdoing is found

E&O is a claims-made policy, meaning it covers claims made during the policy period regardless of when the work was performed — as long as the retroactive date covers the original work.

What E&O does NOT cover

• Intentional wrongdoing or fraud
• Bodily injury or property damage (covered under GL)
• Claims arising before the retroactive date
• Criminal acts or regulatory violations in some policies
• Disputes over fees or contract terms alone

Who needs E&O insurance?

Any business that provides professional advice or services for a fee should carry E&O. The most common industries:

• Insurance agents and brokers
• Real estate agents and brokers
• Accountants and CPAs
• Consultants and management advisors
• IT professionals and software developers
• Architects and engineers
• Financial advisors and planners
• Marketing and PR agencies

Key underwriting factors for E&O

• Type of professional services — higher risk professions (financial advice, medical, legal) pay more
• Revenue — premiums scale with revenue as a proxy for exposure
• Years in business — longer track record with no claims is favorable
• Prior claims — any prior E&O claims must be disclosed and will affect pricing
• Contracts and engagement letters — carriers look favorably on businesses that use written contracts with clients

E&O vs. General Liability — what's the difference?

General liability covers physical injuries and property damage caused by your business. E&O covers financial harm caused by your professional advice or services. Most professional service firms need both — GL for slip-and-fall and property damage, E&O for claims that your work was inadequate or caused a client to lose money. A BOP (Business Owner's Policy) includes GL but never E&O, so it must be added separately.

How AgencyAssist helps

E&O intake requires specific questions about services provided, fee structure, contract practices, and prior claims. AgencyAssist collects this information from your clients with a guided intake form — no phone tag, no missing fields. The completed answers come back ready to submit to your E&O markets.

Streamline your E&O submissions

Send clients a smart intake link. Get all the information you need without the back-and-forth.