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What is errors and omissions insurance?

Liability Insurance
E&O insurance is also known as professional liability insurance, protects small businesses against lawsuits brought by clients claiming that work was inaccurate, late, or never delivered.
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When do small businesses need errors and omissions (E&O) insurance?

Errors and omissions (E&O) insurance is liability coverage for professionals who make a living off their expertise. It covers the cost of lawsuits over professional work mistakes, such as an insurance agent failing to provide adequate coverage or a tax preparer making a costly accounting error.

Your clients may request a certificate of insurance that shows you have this coverage before they do any work with you.

What’s the difference between professional liability and errors and omissions insurance?

Professionals who instead use E&O include:

  • Insurance Agents
  • Real estate agents
  • Tax preparers
  • IT professionals
* Additionally, medical and legal professionals, such as doctors and lawyers, refer to this policy as malpractice insurance.

Professionals who use the term professional liability insurance include:

  • Accountants
  • Architects
  • Consultants
  • Engineers

Does errors & omissions insurance cover losses related to the coronavirus (COVID-19)?


Most business insurance policies exclude communicable disease coverage, which means that losses related to COVID-19 are not covered. However, if a client sues because you were unable to meet a deadline or complete a project due to the coronavirus, it’s possible that your errors and omissions policy would provide coverage.

* To find out if you’re eligible for a claim, please contact your insurance company’s claims department.

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