Errors & Omissions Insurance
If your business offers clients professional advice or services, you may need errors and omissions insurance. Protect yourself from claims related to accidental mistakes and oversights with the right coverage today!
Continue reading to learn more, or get covered today by selecting your industry below.
What is Errors and Omissions Insurance?
Errors and omissions insurance (E&O) is a type of coverage intended to protect business owners and professionals against financial losses arising from errors, omissions, or negligence in their professional services. This coverage is also known as professional liability insurance.
Is It Required By Law?
Errors and omissions coverage is not typically required by law but is highly recommended for anyone who provides a service or advises clients due to the risk of lawsuits.
What Does Errors and Omissions Insurance Cover?
E&O insurance covers third-party damages and financial harm caused by mistakes (errors) and oversights (omissions) in the services you, your business, or your employees offer.
It’s intended to cover you for claims and lawsuits arising from bad advice or counsel a client claims you may have made, such as:
- Errors: Mistakes made while providing services, such as incorrect advice, calculations, or actions that lead to a financial loss for a client
- Omissions: Failing to act or leaving out important information, advice, or action that results in damages or loss
- Inaccurate advice: Unintentionally providing wrong, inaccurate, or misleading advice (believed to be true at the time) that leads to harm or damage
- Negligence: Carelessness or a lack of reasonable care in professional services that results in a loss for a client
It’s also designed to help pay for expenses associated with a claim. These are the additional costs that are triggered by the initial incident, such as:
- Arbitration costs
- Attorney fees
- Court costs
- Lawsuits
- Legal fees
- Settlements
What Does it Not Cover?
E&O insurance policies will not cover claims of intentional wrongdoing, fraud, or criminal acts. These are deliberate and dishonest acts intended to deceive or harm a client.
Most policies also exclude:
- Bodily injury or property damage
- Breach of contract
- Cyber crimes and data breaches
- Damages to your own business
- Employee injuries
- Employment-related suits
- Malpractice claims
- Personal injury or advertising errors
- Prior knowledge of potential claims
- Product-related claims
Errors and omissions insurance coverage, limitations, and exclusions may vary from one insurance company to the next, so review your policy to determine exact coverages and exclusions.
Who Needs Errors and Omissions Insurance?
Any business that provides expert advice, information, or knowledge-based services needs an errors and omissions policy. Professionals who are often expected to carry coverage include, but are not limited to:
- Consultants
- Educators and tutors
- Health and fitness professionals
- Interior designers
- Financial service professionals
- Life coaches
- Marketing agencies
- Media and content producers
- Product manufacturers
- Property managers
- Real estate agents
- Technology professionals
What It Doesn’t Cover
Third-party coverage pays for your liability to others due to the attack, such as:
- Unintended disclosure of personal information
- Credit monitoring for impacted parties
- Regulatory fines and penalties
- Settlement fees and court judgments
- Attorney fees
- Settlement costs
Why You Need Coverage
E&O insurance is designed to act as a risk transfer tool and cover costs arising from claims of errors or omissions, whether you’re a solo entrepreneur or a large enterprise. It may cover claims such as:
- Covers legal claims, including baseless lawsuits from disgruntled clients
- Fulfills contractual obligations to obtain work
- Safeguards small and growing businesses while taking on new clients
- Protects your reputation, even when faced with a claim
- Provides peace of mind for you and your team
- Pays for settlements and lawsuits if you’re found liable
- Builds trust with clients, employers, and contractors
- Protects your business from financial loss due to a claim
Examples of E&O Insurance Claims
Most E&O insurance claims often involve mistakes. Other examples of common claims include:
A tax consultant miscalculated a client’s tax return, leading to an underpayment and penalties from the IRS. The client sued the consultant for the miscalculation, penalties, and loss of business revenue.
A business consultant suggested a new marketing strategy to a client, but after months of implementation, the results didn’t meet expectations. The client blamed the consultant’s advice for the losses and filed a lawsuit.
A marketing agency mistakenly provided poor advice for a new product launch based on dated tactics, causing a business to lose money on the product launch. The business filed a claim against the agency for losses on the campaign.
Claim examples are based on internal and external data and research. All policies have conditions, limitations, and exclusions. Please read the policy for exact verbiage. Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.
How Much is E&O Insurance?
E&O insurance costs can vary based on the type of policy you obtain, the risks you carry, and the work that is being covered.
Some policies include both E&O and general liability insurance for professionals and small businesses, like trainers or tutors, for an average of $20 a month. Other policies offer E&O coverage as an add-on to a policy, and your cost will differ based on the industry you work in.
Your premiums can depend on:
- Annual revenue: Businesses that make more money per year are exposed to more risks than smaller businesses
- Claims history: Having a history of filing insurance claims indicates that your business is vulnerable to risks
- Business operations: The type of work you do or the services you provide can yield more risks than others
- Years in business: Newer businesses and industry professionals have a higher risk of accidents and claims
- Number of employees: The more employees a business has, can increase its exposure to professional negligence
- Location: Where an individual or company operates or conducts business can pose more risk than other locations
- Coverage limits: The more coverage and higher limits a business needs, the more it can expect to pay in premiums
Additional Coverage You May Need
Most business owners need to extend their coverage beyond what general liability and errors and omissions liability insurance cover to properly protect themselves from the claims they’re most likely to face. Insurance Canopy offers several options for additional coverage, including:
- Cyber Liability
- Inland Marine
- Liquor Liability
- Product Liability
- Professional Liability
- Workers Compensation
- Business Owners Policy (BOP)
- Commercial Property
How to Get Your Free Quote
Insurance Canopy offers free, quick quotes by applying online in minutes. Most people can get a quote and purchase a policy instantly, bundling general and E&O liability coverage with ease.
Follow these steps to apply for a free quote today:
- Select your industry
- Begin your application
- Provide the required information about you and your business
- Receive an instant quote or get a custom quote from an agent within 24 hours
If your industry’s base policy doesn’t include errors and omissions or professional liability insurance, and you need this coverage, we can help! Give us a call at 888.600.0894, and a licensed, U.S.-based agent will assist you.
Why Small Businesses Love Insurance Canopy
With Insurance Canopy, you don’t have to choose between affordability and quality coverage. Instead, you get the best of both worlds: A+ rated insurance for a competitively low price. See what else our customers have to say about us!
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TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025 -
Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana Zavala
January 6, 2025I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan Tedesco
January 6, 2025Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve Bryant
January 6, 2025 -
Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad Laibly
January 6, 2025Great and affordable insurance
Peter DAntoni
December 6, 2024Being a caricaturist, I never understood why I needed liability insurance, but it got to that point where I was missing opportunities because of it. So, I researched a bit... Read More
Paul McNeilly
November 12, 2024 -
I’m just saying that is easy to get the vendors insurance with this company
Silvia Delgado
November 6, 2024Definitely a great asset to my business, I have never had a problem getting what I need from IC. Good communication skills, always get help from the agents, attenuative on... Read More
Robert Avila
November 6, 2024Your site was extremely easy to use, I was able to get my event insured for what the event planners wanted. The price was so affordable. Even chatting... Read More
Rebecca Ruby
November 6, 2024 -
Quick easy sign-up convince is great
Vincent Davanzo
November 6, 2024Great to work with. Always available for assistance.
Two Pour Girls Bartending
November 6, 2024Best customer service I have ever had in regards to insurance.
Edward Findley
November 5, 2024 -
Super easy and convenient. Just renewed, thanks.
Wendy Berg
November 3, 2024Great to work with. Always available for assistance.
Courtney Araneo
November 3, 2024This is only the second year I have had this insurance. Haven't had to use it. But it's nice to know i have it. The price is great too
Vickie Sundgren
November 3, 2024 -
Canopy insurance has been great for my business. Definitely a five star definitely recommend it..
Fernando Ferreira
October 12, 2024Very easy and straight forward experience! The agent and live chat were instrumental in acquiring my policy.
Jacob Smith Jr
October 7, 2024Rey was amazing. So easy! So fast!
Herman Koch
September 30, 2024 -
Always treated well. They take care of my business insurance and I don’t have to worry about anything with insurance canopy in my corner. 10 year customer.
Mark Paquin
September 14, 2024Excellent rates and coverage! Did a lot of homework before going with Insurance Canopy, by far the best bang for the buck 🙂
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September 14, 2024She is positive and friendly !
Alan Dynin
September 14, 2024 -
Had a great experience obtaining a policy quickly for a solo musical act. After a year, modified my policy to a fully staffed production easily using the chat feature of... Read More
Paul Tolle
September 6, 2024I am a professional mobile DJ. I use Insurance Canopy for a policy to cover my equipment and liability. They are easy to do business and the website makes... Read More
Don Kirby
September 6, 2024Best price I have found! Excited to be a customer
Dustin Price
September 6, 2024
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TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025 -
Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025 -
As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025 -
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025 -
Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025 -
I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeon
January 6, 2025 -
Super easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana Zavala
January 6, 2025 -
I needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan Tedesco
January 6, 2025 -
Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad Laibly
January 6, 2025 -
Great coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve Bryant
January 6, 2025
FAQs About Errors and Omissions Insurance for Small Businesses
Is E&O Insurance the Same as General Liability Coverage?
No, E&O insurance is not the same as general liability coverage. General liability covers bodily injuries and property damage caused to a third party, whereas E&O covers the economic or financial loss of a third party.
Errors and Omissions vs Professional Liability: What’s the Difference?
Professional liability is negligent acts in your professional services that lead to damages and harm for which you can be held liable. This includes errors and omissions (E&O). Errors and omissions are the specific acts of mistakes and oversights in your professional services that lead to financial loss for clients.
Some policies may use the term “professional liability insurance,” while others use “errors and omissions insurance (E&O).” At its core, they generally cover you for the same types of claims but may be phrased differently based on the industry you work in.
Is E&O Insurance Worth It?
Yes, E&O insurance is worth it — especially for professionals offering expert advice, guidance, consultations, or knowledge!
This type of coverage can help protect you from potentially crippling lawsuits if a client suffers a financial loss from your services. A single claim could be enough to tarnish your reputation and drain your finances, making E&O coverage a necessity for service-based businesses.
Chris Van Leeuwen | VP of Agency Development
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
JoAnne Hammer | Program Manager
JoAnne Hammer is the Program Manager for Insurance Canopy. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
JoAnne Hammer is the Program Manager for Insurance Canopy. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
