Errors & Omissions (E&O)



Do you provide your services to clients for a fee? Doctors, lawyers, insurance agents, accountants, architects, engineers, wedding planners, printers, contractors, real estate services, designers, advertising agencies – the list goes on. If so, you need an errors and omissions insurance policy. Your services or advice could be incorrect or late. If  it costs your client money or harms their reputation, you can be held liable.

Cover your professional advice and services.

Errors and Omissions insurance, also known as Professional Liability, policies usually cover salaried and hourly employees, an subcontractors, and you as the business owner.

Even if you aren’t legally required to carry this insurance, it is wise to secure a policy.

Without E&O insurance coverage, your business may be responsible for the costs of legal defense should you be sued. Those costs can include defense costs and settlement costs, as well as the time required to respond to a claim and the potential damage to your company’s brand and reputation

Working with a MartinoWest expert is the best way to make sure your E&O policy covers you properly.

What is Professional Liability insurance?

Most businesses need professional liability coverage because it provides protection from unexpected expenses if you are accused of a professional mistake.

E&O, or professional liability, insurance helps pay for lawsuit costs and damages if your company is accused of work errors or incomplete projects that cause a client to lose money.

Professional liability can help pay for:

  • Professional negligence (actual or alleged)
  • Legal defense costs
  • Legal judgments

Why is Professional Liability insurance important?

If a customer claims you made a mistake, whether you did or not, professional liability coverage can help you move on quickly, avoiding customer confrontations and protecting your reputation. If you’re ruled at fault for a mistake, missed deadline or professional negligence, this is the coverage that can help you cover expenses, so you don’t have to pay for everything out of pocket. If you’re falsely accused, your coverage can help pay for defense costs.

We often recommend professional liability coverage to go with general liability or a BOP.

  • This covers certain professional and personal services; in case you’re sued for negligence or for the advice you give clients
  • It’s also known as Errors and Omissions Insurance

Example: A client sues a hair stylist for allegedly giving them the wrong cut and color. Professional liability insurance could cover legal defense costs.