Errors and Omissions Insurance

What Is Errors and Omissions Insurance?

Errors and omissions insurance, or professional liability insurance, will protect you in case anyone ever brings a claim against you and your professional services. Errors and omissions insurance provides important coverage to professionals in a wide variety of fields, running the gamut from accountants to film crews to pet groomers to funeral home directors.

Due to its critical nature, it’s crucial for professionals to make sure they select an agent well-versed in errors and omissions insurance. Because general liability insurance is much different from E&O, even the most knowledgeable general liability agents usually don’t have the right expertise to provide the necessary errors & omissions coverage.

To find the right errors and omissions insurance for your needs, a simple online search to can help identify appropriate agents or brokers. Asking colleagues for referrals is another good option, while some professionals, such as CPAs, can check with their industry’s professional associations for suitable recommendations.

Once you’ve identified potential matches, ask if they can provide:

The number of errors and omissions policies in your profession on their


Several references

Payment options

Coverage for independent contractors and additional insureds

A policy tailored to your specific circumstances

The ability to choose from among several different carriers

The last item is particularly important: Each carrier offers slightly varied errors and omissions insurance – being able to compare endorsements and coverage helps ensure finding the very best policy for your needs.

After you’ve found the right E&O insurance agent for your business, the application process is usually the same: fill out an application, provide a resume, and include the insurance portion of the contract you’ll be working under (this allows the agent to tailor our errors and emissions policy directly to your needs without questions or uncertainties).

New businesses often are required to provide a business plan to help the agent determine the extent of their errors and omissions exposure.

Most errors & omissions insurance policies last for a full year and follow the company or individual for whom it was written. As you take on new projects or add staff, make sure to add specific names to your E&O policy as needed.

And, when renewal times rolls around, be sure to update your number of employees and revenue figures with your insurance agent.

Like so many things in life, an errors and omissions insurance policy is only as good as the effort you put into it. Be diligent in researching and vetting your E&O agent to ensure the best fit possible.


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