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Professional Liability Insurance vs Errors and Omissions

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Is professional liability the same as errors & omissions?
Yes — they’re the same coverage, just different names.

Good news: you don’t need to buy two policies. Professional Liability, also known as Errors and Omissions (E&O), refers to the same type of insurance. It’s protection for your professional work if a client claims you made a costly mistake.

What Is Professional Liability, or E&O Insurance?

Professional Liability (also known as Errors & Omissions) protects you when a client claims your work, advice, or service caused them a financial loss.

If you provide expertise, advice, or services, this policy is designed to cover your legal defense, settlements, and judgments when things go wrong. Think of it as your business’s bodyguard. It helps you move forward knowing you’re protected!

Swipe →

Term Industry Use Same Coverage?

Professional Liability

– Consultants
– Coaches
– Designers

✅ Yes

Errors & Omissions (E&O)

– Real estate agents
– Accountants
– Tech professionals

✅ Yes

Malpractice

– Medical professionals
– Lawyers
– Therapists

❌ No
Professional Indemnity

– Consultants
– Coaches
– Designers

✅ Yes

At its core, professional liability is made to protect you from professional mistakes that could cost your client money (or cost you your business).

Is Malpractice Insurance the Same as Professional Liability?

Yes and no. Both protect against claims of negligence or professional error, but malpractice insurance can also include coverage for bodily injury or physical harm caused by your services. The way the term and coverage are used often comes down to the industry you work in.

For example:

  • Lawyers often use “malpractice” as another name for professional liability
  • Healthcare professionals, therapists, and estheticians may use the term when it includes coverage for physical damage or bodily injury

Key Takeaway

  • “Professional Liability” → coverage for professional mistakes or bad advice
  • “Errors & Omissions” → same coverage, different name depending on your field
  • “Malpractice” → used when the mistake could cause physical or financial harm (e.g., healthcare or law)

What Does Professional Liability (E&O) Cover?

Professional Liability (E&O) is designed to cover:

  • Negligence or mistakes
  • Missed deadlines or undelivered work
  • Incorrect advice or guidance
  • Omissions or misstatements
  • Legal defense costs
  • Settlements or judgments
  • Unintended disclosure of personal information
  • Regulatory fines and penalties


In the real world, this may look like:

  • A consultant’s advice leads to a client’s revenue loss
  • A designer delivers late, delaying a client’s launch
  • An accountant’s error triggers penalties for their client

What Does It Not Cover?

Professional Liability (E&O) does not cover:

  • Intentional wrongdoing or fraud
  • Employment dispute (that’s Employment Practices Liability)
  • Workplace injuries (that’s Workers Comp)
  • Property damage or bodily injury (that’s General Liability)
  • Data breaches or cyberattacks (that’s Cyber Liability)


Each business has unique risks, so it’s crucial to assess your business to learn what coverages small businesses need for full protection.

Who Needs This Coverage?

This coverage is essential for service-based pros and small businesses who offer professional advice or services, including:

  • Beauty and wellness professionals
  • Consultants
  • Creative professionals
  • Designers
  • Educators
  • Financial service professionals
  • Fitness professionals
  • Life coaches
  • Media and content producers
  • Real estate agents
  • Technology professionals


Getting insured isn’t about expecting mistakes. It’s about running your business with confidence and credibility!

How Much Does It Cost?

The cost of Professional Liability insurance varies based on factors like:

  • Your industry and risk level
  • Business size and revenue
  • Coverage limits and deductibles


On average, small businesses pay $20 per month for coverage with Insurance Canopy. That’s often less than the cost of a single client meeting!

Key Takeaway

Many clients require proof of insurance before you start work, so it’s an investment that helps you win contracts too.

Additional Insurance Coverage to Consider

For many, professional liability alone isn’t enough to protect against the common claims you face when dealing with clients. Unlock complete protection by pairing your policy with:

Unlock Your Free E&O Quote Today!

Getting insured is a smart step toward professional confidence. Get a free professional liability quote today, so you can focus on what you do best: running your business.

Why 250,000+ Small Businesses Choose Insurance Canopy

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  • Thank you so much

    Steve Monreal Avatar Steve Monreal
    July 11, 2025
  • I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More

    Jamie Calaway Avatar Jamie Calaway
    July 4, 2025
  • Very easy & quick experience. We got insurance in no time with no hassle. Thank you!

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    July 4, 2025
  • I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More

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    June 27, 2025
  • Very easy to renew policy

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    June 18, 2025
  • Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.

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    June 18, 2025
  • Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More

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  • Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More

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FAQs About Professional Liability and Errors & Omissions Insurance

Healthcare, legal, and therapy professions typically use the term “malpractice insurance.” It covers the same risks as professional liability but may also include coverage for bodily injury or physical damage.

Professional liability is usually claims-made, but many policies offered by Insurance Canopy are occurrence-based! This means you’re protected for incidents during your coverage period, even if the claim comes later.

Yes, you also need general liability insurance if you meet clients in person or have physical risks. Professional liability covers your work with clients, while general liability covers your business.

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