Professional liability insurance, also known as errors and omissions insurance (E&O), is a coverage for businesses that offer professional and personal services. E&O insurance protects you in the event that a client is harmed from a service or advice that you provide (for which you are held legally liable). As you may know, business liability insurance covers losses related to bodily injury, property damage or advertising injury. 

Who needs E&O insurance?

You need Errors and Omissions Insurance if you’re in the business of providing a service to clients for a fee. At Gatta Insurance, we can provide and quote many different businesses, i.e. General Contractors, Artisan Contractors, Architects and Engineers, State Agencies, Real Estate Developers, Property Managers, etc.

Errors and Omissions Insurance policies usually covers the business owner, employees and subcontractors working on behalf of the business.

Errors and Omissions Insurance policies vary from company to company, and are written to reflect inherent risks and common exposures particular to different types of businesses.

Some events resulting in a loss for a client may have occurred several years in the past, and the first time the mistake is apparent is when a court summons arrives in the mail. That’s when the retroactive date on the policy is very important. The farther back the retroactive date of the policy, the more coverage and protection it offers.

Even if claims are found to be unwarranted, legal fees and other related expenses can quickly eat up a company’s cash reserves in no time, causing a financial hardship. Most Errors and Omissions Insurance policies cover judgments, attorney fees, court costs and settlements up to the limits of the policy.