CLOSE

Auto

Home

Business

Employee Benefits

About Us

Find an Agent

Errors and Omissions Coverage

Updated 12:24 PM EST, Mon November 12, 2018

Looking for Coverage?

The Hartford makes it easy to get a business insurance quote online.
Start Quote

What Is Errors and Omissions Insurance Coverage?

Errors and Omissions Insurance (E&O), also known as Professional Liability Insurance, helps protect you and your company from actual or alleged mistakes, errors, omissions, negligence or failures that occur while providing advice and services to clients. Typically clients file claims against you for mistakes, errors, omissions, negligence or failures in performance when they suffer financial loss. For example, say a partner from your accounting firm provides advice to a client that is allegedly not financially advantageous. As a result, the client suffers a large financial loss and files a claim against your accounting firm for negligence. Errors and Omissions insurance can help cover the costs associated from this claim.
 

What Does E&O Cover?

Errors and Omissions insurance provides a variety of coverage for businesses and professionals. These coverages include: 
 
  • Damages. Error and Omissions insurance covers judgments and settlements of claims that are a result of advice and services provided. This includes errors, mistakes, omissions or advice that is not advantageous to the client. For example, a financial planner makes suggestions that turn out not to be a good option for a client’s financial situation. After the client follows the advice and loses money, they file a claim for negligence. Errors and Omissions insurance can help cover the costs associated with this claim.
  • Defense costs. Errors and Omissions insurance can help cover defense costs that result from a claim made against you by a client who is unhappy with your work or because of a mistake or error.
  • Personal injury. Errors and Omissions insurance can help cover the costs associated with personal injury claims. These can include libel and slander claims. For example, after a client and employee struggle to work together, your employee takes to social media to express their frustrations. After the client sees the posts, they file a claim against your business for libel. Errors and Omissions insurance can help cover the expenses associated with this claim.
  • Disciplinary proceedings. Errors and Omissions insurance can help cover the expenses associated with proceedings brought by a regulatory, licensing or other government agency alleging professional misconduct. For example, an unhappy client files a complaint with a state or local licensing board and a hearing is held. Errors and Omissions insurance can help cover the expenses associated with this claim.
  • Loss of earnings. Errors and Omissions insurance can help cover your lost earning for the time that you spend at depositions and trial.
  • Subpoena assistance. Errors and Omissions insurance can help cover the expenses associated with the receipt of a subpoena in a lawsuit in which you are a witness.
  • Temporary staff. Errors and Omissions insurance covers claims made from issues with employees, temporary staff or independent contractors. For example, an independent contractor working for your business provides a client with inaccurate information that results in financial loss for the client. As a result, the client files a claim against your business. Errors and Omissions insurance will help cover the costs associated with this claim.
  • Worldwide Errors and Omissions insurance coverage. Errors and Omissions insurance covers your business across the United States including all territories and Canada. For example, you visit a client in California and they feel unsatisfied with your business performance. This leads them to file a claim against you for negligence. Errors and Omissions insurance will help cover costs associated with this claim made outside of your business’s home state.

Who Needs Errors and Omissions Insurance Coverage

Businesses have different needs depending on the services they provide. This means that each type of business is exposed to different risks. Businesses that work with customers should consider Errors and Omissions insurance as a part of their overall insurance coverage. Some business professionals that benefit from Errors and Omissions insurance include:
 
  • Technology professionals. These professionals benefit from Errors and Omissions insurance because technology has become a part of almost all business procedures. This means that technology failure can be devastating to a client’s profits. Software, hardware and electronic manufacturing businesses especially benefit from Errors and Omissions insurance.
  • Management and business consultants. Consultants provide advice and services to clients. Errors and omissions insurance can help protect against claims brought by dissatisfied clients.
  • Real estate professionals. Real estate agents provide advice that directly impacts client’s home buying decisions which ultimately affects their finances. This means that they need the protection from negligence, errors and omissions that Errors and Omissions insurance provides.
  • Tax preparers. Tax preparers specialize in helping clients get their taxes paid correctly and accurately. Mistakes or lapses in judgment can occur costing their client more money. Errors and Omissions insurance can help protect tax preparers when providing professional service to a client.
  • Accountants. Accountants provide a wide range of financial advice and services to their clients all of which have potential financial ramifications. Errors and Omissions insurance can help protect accountants when providing professional advice to a client.
  • Advertising agencies. While providing innovative ideas to their clients, advertising agencies can run afoul of privacy and other regulations. Errors and omissions insurance can help protect against these claims.
  • Graphic designers. Graphic designers develop the overall layout and production design for various applications such as advertisements, brochures, magazines, and corporate reports. Any mistakes can lead to claims by clients and errors and omissions insurance can help protect against such claims.
  • Interior decorators. While providing advice and services in the decoration and furnishings of the interior of a house or business, client dissatisfaction with the finished product can lead to claims. Errors and omissions insurance can help protect against these claims.
  • Travel Agents. The disruption of vacation travel can lead to claims by clients. Errors and omissions insurance can help protect the travel agent against these claims.
These professionals all work with clients and provide services directly to them. Through providing professional advice and services to others, they become vulnerable to certain threats. These threats include:
 
  • Lawsuits
  • Legal fees
  • Court costs
  • Attorney fees
  • Administrative costs
  • Settlements and judgments
Errors and Omissions insurance is required in some states and by certain licensing boards. This insurance not only protects professionals in case of mistakes but also communicates a strong message to clients. Being properly insured can allow your company to appear more reputable and trustworthy. It also shows that you have considered the impact of potential mistakes thoroughly and take the risks seriously.
 

What Is NOT Included in Errors and Omissions Insurance Coverage

Errors and Omissions insurance is vital for businesses but there are certain exclusions that exist. These include:
 
  • Employment matters. Employment practices are not covered under Errors and Omissions insurance. This means that claims filed for issues regarding employment practices, workers compensation or employer’s liability are not covered. For example, after firing one of your employees they file a claim for wrongful termination. Errors and Omissions insurance will not help cover the costs associated.
  • Illegal acts or purposeful wrongdoing. Errors and Omissions insurance does not cover any fraudulent actions. This includes any dishonest behaviors or criminal action. For example, say you stole money from a client and they file a claim against you. Errors and Omissions insurance will not help cover the costs associated with the claim because theft is a criminal act.
  • False advertising. Errors and Omissions insurance will not cover any false advertising claims. For example, after your new marketing professional created false advertising campaigns, clients begin filing claims against you. Errors and Omissions insurance will not help cover the costs associated with the claim.
  • Patents and trade secrets. Errors and Omissions insurance does not cover patent infringement or theft of trade secrets. For example, your new employee obtains patented technology recently created by another technology company. The employee does not get permission for the technology and a claim is filed against you. Errors and Omissions insurance will not help cover the costs associated with the claim.
  • Bodily injury or property damage. Errors and Omissions insurance will not cover any claims involving injury to others or damage to their property. For example, you accidently trip a client when walking past them. Errors and Omissions will not help cover expenses associated with the accident. To get coverage against bodily injury and property damage visit The Hartford’s General Liability Insurance page.
  • Personally identifiable information. For each client you have records of personal information. After someone hacks into your business’s computer system and steals this information, claims are filed against you. Errors and Omissions insurance will not help cover costs associated with the claims. To get coverage for personally identifiable information visit The Hartford’s Data Breach Insurance page.

How Do I Get Errors and Omissions Insurance Coverage?

Get a quote today from The Hartford without leaving the comfort of your home or office.
 

Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including issuing company, Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.