Professional Liability Insurance (Errors & Omissions)
Professional liability — also called errors & omissions (E&O) — covers claims that a mistake, missed deadline, or bad advice in your professional service caused a client financial harm. Unlike general liability, which covers physical injury and property damage, E&O covers purely financial losses: a marketing campaign that used the wrong figures, a missed filing deadline, a software bug that broke a client's workflow. Any business that gives advice, designs something, or manages a client's money, data, or campaigns is exposed to this kind of claim even when the work was done in good faith.
Professional Liability (E&O): what it costs, what it covers, who needs it
Rates vary by state, revenue, and claims history — always compare multiple quotes.
Not legally mandated for most professions, but frequently required by client contracts before work can begin.
What's covered
- Legal defense for claims of negligence, error, or omission in professional services
- Settlements or judgments tied to a covered mistake
- Claims of missed deadlines or failure to deliver as contracted
- Copyright/trademark claims tied to creative or marketing work product
What's excluded
- Bodily injury or property damage (covered by general liability instead)
- Intentional wrongdoing or fraud
- Claims arising from services outside your stated professional scope
- Cyber breaches of client data (a cyber liability policy handles this)
Covers financial harm from a mistake in your advice or work product — not physical injury or property damage.
What drives the price
- Type of professional service and its typical claim severity
- Annual revenue and average contract size
- Claims history and years in business
- Coverage limit and whether clients contractually require a specific minimum
Real claim example
An agency publishes a paid ad campaign with an incorrect discount code that costs the client six figures in unplanned discounts.
E&O covers the agency's legal defense and a negotiated settlement with the client — roughly $60,000 total.
Professional Liability (E&O) is commonly required for businesses in this situation. At $45–$150/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.
Where to get a quote
We don't have partnerships with these providers yet — these are direct links to their public sites, not affiliate links.
Digital-first small-business insurer with instant online quotes across most trades.
On-demand coverage by the hour, day, or month — built for contractors and freelancers.
Specializes in professional liability for consultants, agencies, and service businesses.
Digital brokerage focused on tech, professional-services, and startup risk profiles.
Online broker comparing quotes across multiple carriers in one place.
Online broker offering side-by-side small-business insurance comparisons.
FAQs
Is E&O the same as malpractice insurance?
They're the same concept — "malpractice" is just the term used in licensed fields like medicine and law, while "E&O" is the general business term.
Do I need this if I already have general liability?
Yes — GL and E&O cover different things. GL won't pay a claim that your advice or work product caused a purely financial loss.
Does E&O cover work my subcontractors do?
Only if your policy explicitly extends to subcontracted work — confirm this with the carrier if you regularly use subs.