Errors and Omissions (E&O) Insurance

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What is Errors and Omissions (E&O) Insurance?

Errors and Omissions insurance (E&O), a form of professional liability insurance, is designed to protect employees and employers against clients' claims of negligence or inadequate work.

E&O policies usually cover legal costs associated with the claim and most or all of the ensuing settlement, though a policy may not cover the entire settlement if the amount exceeds the limit specified in the insurance contract. In many industries, lawsuits happen whether the associated claims are legitimate or not.

For example, a graphic designer is sued after creating a trademark that another business claims is similar to their trademarked logo. Court costs are normally high even if the claim is baseless and ends in the defendant's favor. In such a case, Errors and Omissions insurance could financially protect the graphic designer during a costly legal battle.

View our quote examples to understand how much errors and omissions insurance costs.


Who needs Errors and Omissions (E&O) Insurance?

Errors and Omissions insurance is useful whenever you or your employees provide a service that a client could claim is inadequate or tied to negligence. For example, if you are a real estate agent, you may find yourself facing a lawsuit if a homeowner finds defects in their new property after closing. This homeowner may allege you did not disclose the defects and try to collect based on the diminished value of the home.

To illustrate another example, imagine that you are hired as a branding consultant to help revive a struggling company. If the innovative techniques that you employ are not enough to keep the business open, the company’s owner may try to blame you and file a lawsuit.

No matter how baseless both claims are, they can tie you up in legal fees –something that can be avoided with the purchase of an Errors and Omissions insurance policy. 

Even if you already own a Business Owners Policy, you are not protected from lawsuit-related costs. Errors and Omissions insurance is necessary for proper protection against professional liability claims.


Example professions we insure


Is Errors and Omissions Insurance Legally Required?

While not all types of businesses are required by law to carry this coverage, some professionals are required by regulatory or licensing boards within their profession to have it. In more than 10 states, for example, real estate agents are required to show proof of E&O coverage before they receive their licenses. 

While local or state laws may or may not expressly require some types of professionals to carry E&O coverage, other laws regarding their duty of care to clients make it a necessity. Additionally, you should seriously consider errors and omissions coverage if your business provides a professional service or regularly gives advice.


Your Errors and Omissions Insurance Policy Covers Claims Of


What your Hiscox Errors and Omissions Insurance policy doesn't cover

We want our customers to fully understand what they are buying. Below is a summary of some of the key exclusions of your errors and omissions insurance policy. For complete details of all the exclusions, please read the policy wording.

  • Employment Matters: Your policy doesn't cover your business for claims alleging any improper employment practices committed against your employees or for any workers’ compensation claims or employer's liability claims.
  • Fraudulent Acts: We won’t cover any fraudulent, dishonest or criminal acts. However, we’ll defend these actions until they’re proven to be fraudulent, dishonest or criminal by proper process in court. If this happens, we’ll kindly request that you reimburse us for those costs.
  • Bodily Injury or Property Damage: Hiscox errors and omissions insurance doesn't cover damages or claims expenses for third-party injuries (slip and falls) or damage to someone’s property. To protect your business from these risks, please see our general liability insurance coverage page.
  • Personally Identifiable Information: Your errors and omissions insurance coverage policy does not cover your business’s failure to protect any personally identifiable information in its care, custody or control.
  • Patents and Trade Secrets: Your policy does not cover your business for any claims that allege an infringement of a patent or theft of a trade secret.
  • False Advertising: Your Hiscox Errors and Omissions Insurance policy does not cover you for any false advertising claims.
  • Other Services: We don’t cover any services you perform not specified by the services endorsement attached to your policy. Your policy will also not cover any medical, nursing, insurance broker/agent, legal, actuarial, architectural or engineering services, regardless of your occupation.

Get Liability Insurance that best meets your needs

General liability insurance will not protect you from everything. For example, general liability insurance will not cover you against claims of negligence, even if it isn’t you or your business’ fault. Some people buy other businesses liability insurance along with general liability.

  • General
    Liability

    The basic protection for claims against your business.

  • Professional
    Liability (E&O)

    Protection for specific risks in your field.

  • Business
    Owners Policy

    General Liability plus coverage for property.

  • Cyber
    Security

    Protection from cyber-related security risks.

  • Workers
    Comp

    Protection for employees who are injured or become ill on the job.

  • Short-Term
    Liability

    Purchase coverage for a specific period of time.

  • Medical
    Malpractice (E&O)

    Protection for claims against your medical practice.

  • More
    Coverages

    Umbrella, Auto, Directors and Officers, and more.

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Why over 500,000 small businesses choose Hiscox

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Customer reviews

  • Emanual

    Easy Self Maintenance Policy
    Up & running in less than 10 minutes. Never had a claim so all is great so far.

    5 star review
  • Aaron

    Get’s no better
    Quick and easy approval process, Very affordable with quality business, HIGHLY RECOMMEND.

    5 star review
  • Jan

    I will use Hiscox again and again! :)
    Quick and easy online service.

    5 star review
  • Teresa

    Great customer service.
    Customer service was very friendly and knowledgeable. I needed to make a few changes to my policy and they made it very easy to do…

    5 star review
  • Matthew

    A stress-free, easy option for business liability insurance, and more! Hiscox has provided a stress-free, easy option to purchasing quality business liability insurance (and more), and stayed focused on providing valuable resources for me and my business…

    5 star review
  • Shaundra

    Ease of acquiring the insurance (protection) I needed to fit my business and my budget.

    4 star review
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