Errors and Omissions (E&O) insurance, also known as professional liability insurance, is a type of insurance that protects businesses and individuals from claims of inadequate work or mistakes made during the course of work. E&O insurance is typically obtained by companies that provide services to customers for a fee, and it can be obtained from many major commercial insurers. Companies that run out of a home-based office must buy a separate policy, as they cannot get E&O insurance under a homeowners policy.

E&O insurance covers a range of errors, mistakes, or oversights incurred during the course of work, including failure to meet a deadline or deliver a specific service promised to a customer, professional negligence, failure to meet a specific standard of care, and breach of contract. The benefits of E&O insurance vary greatly depending on the policy and issuing insurance company.

E&O insurance is different from general liability insurance, which is more suited towards coverage for a company involving claims for bodily injury or property damage. E&O insurance is coverage specific to mistakes performed specific to the operations of a business.

Businesses that provide services to clients for a fee need E&O insurance, and it is typically customized to meet specific needs of a business or industry. The cost of E&O insurance varies depending on factors such as business risk, business type, location, coverage limits chosen, and the risk class associated with the business.

In summary, E&O insurance is a type of insurance that protects businesses and individuals from claims of inadequate work or mistakes made during the course of work. It is typically obtained by companies that provide services to customers for a fee and covers a range of errors, mistakes, or oversights incurred during the course of work. E&O insurance is different from general liability insurance and is customized to meet specific needs of a business or industry.