Errors & Omissions Insurance (E&O)

Protect Your Business When a Client Claims You Made a Mistake

You take your work seriously. But even experienced professionals can make mistakes—and sometimes a client can claim you made one even when you believe you did everything right.

If a client says your advice, professional service, or mistake caused them financial harm, your standard business insurance may not cover the resulting lawsuit.

Errors & Omissions Insurance (E&O) helps protect your business against certain claims arising from the professional services you provide.

At Blue Marsh Insurance, we help Pennsylvania businesses understand their professional liability risks and find coverage designed for the work they actually do.

What Is Errors & Omissions Insurance?

Errors & Omissions Insurance—also known as E&O Insurance or Professional Liability Insurance—is designed to protect businesses that provide professional services, expertise, recommendations, or advice.

A client could allege that your business:

• Made a professional mistake
• Provided incorrect advice
• Failed to deliver a promised service
• Missed an important deadline
• Was negligent in providing professional services
• Made an error or omission that caused a financial loss

Even if you believe the claim has no merit, defending your business can be expensive.

E&O coverage may help pay for legal defense costs, settlements, judgments, and other expenses associated with a covered professional liability claim, subject to the terms and limits of your policy.

Doesn’t General Liability Insurance Cover Professional Mistakes?

This is an important distinction.

General Liability Insurance typically helps protect your business against claims involving things like third-party bodily injury, property damage, and certain personal or advertising injuries.

Errors & Omissions Insurance is designed to address certain claims involving mistakes, negligence, or failures in the professional services your business provides.

For example, if a customer slips and falls in your office, that could potentially be a General Liability claim.

If a client claims your professional advice caused their business to lose thousands of dollars, that could potentially be an E&O claim.

Having General Liability Insurance doesn’t necessarily mean your business is protected against professional liability lawsuits.

Who Needs E&O Insurance?

If customers or clients rely on your knowledge, advice, recommendations, designs, services, or expertise, your business may have an Errors & Omissions exposure.

E&O Insurance may be important for:

• Consultants
• Accountants and bookkeepers
• Marketing and advertising professionals
• Technology and IT companies
• Real estate professionals
• Property managers
• Engineers
• Architects and designers
• Financial and professional service businesses
• Contractors who provide design or consulting services
• Other businesses that provide specialized professional services or advice

Different professions face different risks, which is why E&O coverage should be tailored to the services your business provides.

What Does E&O Insurance Cover?

Every policy is different, but Errors & Omissions Insurance may provide protection for claims involving:

• Professional negligence
• Errors or mistakes
• Omissions
• Misrepresentation
• Inaccurate advice
• Failure to perform professional services
• Missed deadlines
• Breach of professional duty
• Financial losses allegedly caused by your services

E&O coverage can also provide an important benefit before a case ever reaches a courtroom: legal defense coverage.

A lawsuit doesn’t have to be successful to be expensive. Attorney fees and other defense expenses can quickly add up, even when your business ultimately isn’t found liable.

Does My Small Business Need E&O Insurance?

Professional liability claims aren’t limited to large companies.

In fact, a lawsuit can be particularly difficult for a small business because it may not have the financial resources or in-house legal team of a larger company.

Consider what would happen if a client claimed that a mistake your business made cost them $50,000, $100,000, or more.

Would your current business insurance respond?

That’s a question worth answering before a claim happens.

Is E&O the Same as Professional Liability Insurance?

In many cases, the terms Errors & Omissions Insurance and Professional Liability Insurance are used interchangeably.

The terminology may depend on the profession or insurance company.

Regardless of what the policy is called, the important part is making sure the coverage is designed around the specific professional services your business provides.

How Much Does E&O Insurance Cost?

The cost of Errors & Omissions Insurance varies from business to business.

Insurance companies may consider factors such as:

• Your profession or industry
• Services you provide
• Annual revenue
• Number of employees
• Claims history
• Contracts with clients
• Coverage limits
• Deductible
• Other characteristics of your business

A small consulting firm, for example, may have very different professional liability risks than a technology company or engineering firm.

At Blue Marsh Insurance, we’ll take the time to understand what your business does before recommending coverage.

Don’t Let One Mistake Become a Major Financial Loss

Your clients hire you because they trust your expertise.

Unfortunately, providing professional services also creates risk. A misunderstanding, missed detail, incorrect recommendation, or allegation of negligence could potentially turn into an expensive legal dispute.

Errors & Omissions Insurance can provide an important layer of protection that may not be included in your standard business insurance policy.

At Blue Marsh Insurance, we’ll help you review your existing coverage, identify potential gaps, and determine whether E&O Insurance makes sense for your business.

As an independent insurance agency, we can explore coverage options from multiple insurance companies to help find protection that fits your business and its unique risks.

Talk to Blue Marsh About E&O Insurance

Does your business provide advice, expertise, or professional services?

Let’s make sure you’re protected if a client claims something went wrong.

Contact Blue Marsh Insurance today to request an Errors & Omissions Insurance quote or review your current business coverage.