Errors and Omissions Insurance

Errors and omissions is a popular name for professional liability, they both refer to the same policy and provide coverage to professionals or consultants for errors and omissions in their services. In some industries, it’s also commonly known as malpractice insurance. Regardless of what you refer to it as, it may be important to protect your business practice with this policy.

The difference is that D&O (Directors and Officers) Insurance only applies to directors and officers of a company and E&O (Errors & Omissions) Insurance applies to any professional who provides a service. Both policies provide coverage for errors and omissions borne out of negligence.

Errors and omissions (E&O) insurance covers legal costs and settlements that arise from claims of errors, omissions, negligence or inadequate service provided by professionals such as doctors, consultants, engineers, accountants, etc. It does not cover any damage done intentionally. 

Yes, as long as you provide a service to a client, regardless of your location, you can be sued for errors and omissions arising out of negligence. It is best practice to protect yourself with insurance as legal costs and settlement fees are devastating for small businesses and freelance professionals.