Errors and Omissions Insurance
Errors and Omissions Insurance for Small Business Owners
Errors and Omissions (E&O) insurance offers vital protection for small business owners who provide services, guidance, or expertise. It covers claims related to professional mistakes, oversights, or missed deadlines that can result in financial loss for your clients. With the help of Gild’s trusted insurance partners, you can secure customized E&O coverage that fits the way you work, so you can focus on running your business without worrying about potential liabilities.
What Is Errors and Omissions Insurance?
E&O insurance, also called omissions and errors insurance or professional liability insurance, protects businesses from financial loss caused by mistakes, negligence, or failures in professional services. It helps pay for legal defense costs, settlements, and judgments when clients claim your work caused them financial harm.
Many businesses search for this type of coverage when they provide advice, services, or expertise rather than physical products. Even baseless claims can be expensive, which is why insurance for errors and omissions is critical.
What Does Errors and Omissions Insurance Cover?
Errors and omissions insurance typically covers claims related to professional services, including:
Negligence or oversight
Inaccurate advice
Missed deadlines
E&O insurance, or technology E&O insurance, typically responds to claims tied to the professional services your business provides, including:
- Settlements and judgments awarded to clients
- Missed deadlines or incomplete services
- Claims tied to past and present services
- Vicarious liability for actions of employees or contractors
What Errors and Omissions Insurance Does Not Cover
- General liability insurance – covers bodily injury and property damage
- Employment practices liability insurance – covers employment-related claims
- Cyber insurance – covers cybercrime and data-related losses
- E&O exclusions – fraud, criminal acts, and intentional wrongdoing
Who Needs Errors and Omissions Insurance?
E&O is commonly used by businesses that provide professional services or advice, including:
- Healthcare and wellness businesses for non-medical malpractice services
- Accountants, engineers, and architects
- Educators, coaches, and service-based professionals
Why Get Tech E&O Insurance
Tech E&O insurance, also called technology errors and omissions insurance or technology professional liability insurance, is designed specifically for technology-focused businesses. It protects against financial losses caused by technology service failures, product issues, or professional mistakes.
Tech E&O insurance focuses on performance failures, not just data breaches.
What Tech E&O Insurance Covers
Tech E&O insurance commonly covers financial losses caused by technology-related professional mistakes and service failures.
- Professional negligence in technology services
- Software bugs, coding errors, or system outages
- Missed deliverables or failed implementations
- Hardware or software product failures
- Financial loss caused by bad technical advice
- Media liability, intellectual property claims, or data privacy issues, depending on the policy
Who Needs Tech E&O Insurance?
This type of insurance is essential for many technology-driven businesses, including:
- Software developers and SaaS businesses
- IT consultants and IT service providers
- Web developers, web designers, and hosting companies
- Technology consultants and professional services firms
- Hardware and software resellers
- Technology vendors and solution providers
Tech E&O vs. Cyber Insurance
Tech E&O insurance covers financial losses caused by professional mistakes or service failures, such as software that does not work as promised.
Cyber insurance covers costs related to cyber incidents, such as data breaches, ransomware, and hacking events.
Many businesses carry both or choose combined policies that include technology errors and omissions insurance with cyber coverage.
Key Benefits of Errors and Omissions Insurance
E&O insurance provides important protection by:
- Reducing out-of-pocket legal costs
- Protecting business revenue and assets
- Meeting client or contract requirements
- Strengthening credibility and trust
- Helping businesses survive costly lawsuits
How Much Does Errors and Omissions Insurance Cost?
The cost of E&O insurance varies based on:
- Industry and services provided
- Business size and revenue
- Claims history
- Coverage limits and deductibles
Technology errors and omissions insurance often costs more due to higher financial risk exposure.
How to Get an Errors and Omissions Insurance Quote
Your Gild Insurance Agent is here to understand your business and find the right coverage tailored to your needs.
For a free, online quote in minutes, try out Gildber! The fast, hassle-free option for a business insurance.
Frequently Asked Questions
What is errors and omissions (E&O) insurance?
E&O insurance helps protect businesses if a client claims a mistake, oversight, or professional error caused them financial harm. It can help cover legal defense costs and settlements tied to professional services.
Who needs E&O insurance?
E&O insurance is commonly needed by service-based businesses and professionals who provide advice, expertise, or deliverables. This includes consultants, tech providers, marketers, designers, accountants, and other professional service firms.
What does E&O insurance cover?
E&O insurance can cover claims related to negligence, errors, omissions, missed deadlines, or failure to deliver services as expected. Coverage applies to financial losses, not physical injuries or property damage.
How much does E&O insurance cost?
The cost of E&O insurance depends on your industry, services offered, revenue, claims history, and coverage limits. Higher-risk professions and larger operations typically require higher premiums.
