Professional liability insurance, also called errors and omissions insurance (E & O insurance), is a form of liability insurance that helps protects your business if you are sued for negligently performing your services.

What Errors and Omissions insurance is?

Most errors and omissions policies only protect your business from economic or financial loss, as opposed to bodily injury and property damage claims. Claims that can trigger errors and omissions usually include claims that result from advice, expertise or professional services you provide. If your business offers advice, expertise or professional services, you could be at risk for being sued by a customer, client or other party who claims they have lost money or was harmed in some way due to a negligent act, error or omission.

Why a professional should buy an Errors and Omissions policy?

Professionals are expected to have extensive knowledge or training in their industry and are expected to perform the services for which they were hired, according to the standards of conduct in their profession. If they fail to do so, they can be held legally responsible for any harm or financial loss that they cause.

What an Errors and Omission policy can cover?

Errors and omissions insurance will protect you in cases of faulty service (errors) or failure to provide a service altogether (omission). This type of insurance coverage pays the cost of your defense and any damages awarded (up to your policy limits). There are many specialized policy forms that respond to the individual risks of particular professions and services. Such examples of those forms include but are not limited to Accountants, Architects and Engineers, Lawyers and Medical malpractice.

Who is considered a professional?

Professionals can be contractors, engineers, architects, insurance agents, lawyers, doctors, etc.


For a better understanding how an Errors and Omission policy would respond to a claim there are several links below with claims scenarios for different professions.



Architects & Engineers:

Stephanie Carter

Commercial Account Manager

Posted in: annapolis insurance agency, business insurance annapolis, business insurance policies, commercial insurance, employee practices liability insurance, henry murray insurance annapolis, Technology

Sign up for the Newsletter

* = required field