Errors and omissions coverage responds to claims that a professional's advice, service, or work product was negligent and caused economic loss. It covers professions ranging from insurance agents and real estate brokers to consultants, technology vendors, and design professionals.
E&O is almost always written on a claims-made basis, with a retroactive date, a defined professional services definition, and frequently a defense-within-limits structure.
Alternative Names:
E&O Insurance, Professional Indemnity Coverage
Why it Matters?
General liability policies exclude professional services, so E&O is often the only coverage responding to a professional liability suit. The definition of professional services in the specific form controls whether a claim is covered at all, and because most E&O policies erode with defense spending, early evaluation of realistic exposure against remaining limits is essential.
Frequently Confused with
Related terms
Frequently asked questions
What is the difference between E&O and general liability?
Why does the professional services definition matter so much?
