Insurance that covers claims that your professional work, advice, or services caused a client financial harm. Also called professional liability insurance.
Errors and omissions (E&O) insurance, also called professional liability insurance, covers claims that your professional work caused a client financial loss: a missed deadline that cost them a deal, advice that led to a bad outcome, a mistake in a deliverable, or an alleged failure to perform services as promised. The policy pays for legal defense as well as settlements or judgments, which matters because defending even a weak claim is expensive.
E&O fills the gap that general liability leaves open. General liability covers physical harm (injuries and property damage); E&O covers financial harm caused by the substance of your work. Consultants, accountants, designers, agencies, brokers, and anyone whose product is advice or professional services carries this exposure, and larger clients often require proof of E&O coverage in their contracts before engaging.
Pricing scales with revenue and the sensitivity of the work. Policies are widely available from small business carriers and profession-specific programs, and quotes are typically fast to obtain online.