Errors and Omissions Insurance (E&O)
Errors and omissions insurance, also called professional liability insurance, covers claims that a business's professional services, advice, or work product caused a client financial harm due to a mistake, omission, or failure to deliver as promised, even without any physical injury or property damage involved. It's built for the risk of being wrong, not the risk of causing an accident. The Allen Thomas Group places E&O for consultants, agencies, and other service-based businesses whose real exposure is a dissatisfied or harmed client, not a slip-and-fall.
What E&O Actually Responds To
Claims typically allege negligence in professional duties: a missed deadline that cost a client a contract, incorrect advice that led to a financial loss, a design error, or a failure to deliver a service as agreed. General liability, by contrast, responds to bodily injury and property damage, not financial harm from professional mistakes, which is exactly the gap E&O fills.
E&O vs. General Liability
| Coverage | Responds To | Example Claim |
|---|---|---|
| General Liability | Bodily injury, property damage | Client slips in your office |
| Errors and Omissions | Financial harm from professional mistakes | Bad advice causes client a monetary loss |
Why This Matters for Coverage
Many service businesses assume general liability covers them broadly and skip E&O entirely, then discover during an actual claim that a bad piece of advice or a missed deliverable isn't a covered peril under GL at all. Because E&O is almost always written on a claims-made basis, businesses also need to think ahead about retroactive dates and tail coverage when switching carriers, not just the coverage itself.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how errors and omissions insurance (e&o) affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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