Errors and Omissions Insurance FAQs

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Feefo Reviews: Hiscox rated 4.7 out of 5 with 14,843 reviews between 10-25-11 and 8-26-19.
Rated 4.7 / 5 with 14,843 reviews between 10-25-11 and 8-26-19.
What Does E&O Insurance Cover?

An E&O policy defends you and your employees from wrongful acts, which means any actual or alleged breach of duty, negligent act, error, omission or personal injury committed by you in the performance of your professional services. It excludes malicious or intentional acts, and other restrictions are outlined in the restrictions clause of the contract. The definitions portion of the contract should give you a clear idea of what is covered. Defense costs are covered up to the policy's specified limit. Also, any special or specific types of coverage are outlined in the declaration section to give you further clarification. For example, this could be marketing consulting services if your specific industry is marketing, or it could be IT consulting services if your specialty is information technology.

Not all E&O policies cover work that was performed prior to the policy's effective date, and some may not cover temporary employees. If these issues are applicable to you, inquire about them before choosing a policy. As with other types of insurance, those who have a history of E&O claims may be subject to higher premium costs.

Who Needs Errors and Omissions Insurance?

As a rule, if you are a professional who provides a service to a client, E&O insurance is beneficial even if laws or licensing boards do not require it. E&O 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 E&O insurance policy. 

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

What are the benefits of Errors and Omissions Insurance?

With E&O insurance, you can strengthen your company's reputation by demonstrating that you are well-prepared and risk-averse. E&O insurance also shows that you have high standards and hold your workers to them as well. In addition, it shows that you realize the potential for human errors and care enough about your company to protect it in the event of a mistake. Although many professionals never have to file an E&O claim, having the policy provides valuable peace of mind.

Hiscox offers E&O insurance for many industries in addition to commercial general liability and Business Owners Policies. If there is a possibility of your company being accused of performing poor work or being negligent, you can request a quick E&O premium quote by selecting your profession and state here or speaking to one of our knowledgeable representatives.

Get a fast, free quote now and get that Hiscox confidence behind your business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday through Friday from 8am-10pm EST.


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Hiscox Customer Reviews

94%
Feefo Reviews: Hiscox rated 4.7 out of 5 with 14,843 reviews between 10-25-11 and 8-26-19.
Rated 4.7 / 5 with 14,843 reviews between 10-25-11 and 8-26-19.

Sandra, Virginia
"Hiscox makes the process easy! I had a potential new contract that bizarrely, required commercial general liability, despite me being a 1-person company, working in a secure home office, on a computer. I called 4 companies, recommended by colleagues. Hiscox was easiest to work with; the woman I got when I called, took all my information, made recommendations to suit my situation, so I signed up. The other insurance companies required me to complete long forms, with many (irrelevant to my situation) questions, then called me between a week and 2 weeks later, with policy estimates that were much more expensive and clearly intended to insure larger complex companies. "

 

Dee Taylor-Jolley, Washington, DC
"Easy to work with.
Easy to work with. Business finance options were clear."

 

Alan, Maryland
"Hiscox makes it easy to independently evaluate their services and just as easy to follow up and close the deal. I found their information clear and to the point and easy to follow up on."

 

Toni Farina, Horsham, PA
"Easy transaction from start to finish. Smooth easy transaction.  I would recommend Hiscox Insurance to others."

 

Mary, New Jersey
"Educated professional service.
Very prompt knowledgeable service."

 

Kristian, New York, NY
"Technology Policy, Great. Agent had clear knowledge of policy and my needs. Answered my questions and gave me advise."

 

John R., Connecticut
"Simple, straightforward, and efficient.
There was no wasted time on the phone and the representative was able to answer questions fully. Great value for coverages provided."

 

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This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.