protect your business
from costly mistakes
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errors and omissions insurance
What is errors and omissions insurance?
Errors and omissions (E&O) insurance, or professional liability, helps protect you from financial losses due to mistakes, oversights or negligence associated with a customer or client claim filed against your business.
Why is it important to have errors and omissions insurance?
A lawsuit from a mistake or oversight can have a financial impact on your business and put the trust between you and your customer at risk as well. Even if the case is eventually dropped, those legal fees can add up and be detrimental on your business.
Errors and omissions insurance can also help you gain more clients knowing they will be protected if a mistake hurts them financially.
What does errors and omissions insurance typically cover?
The costs associated with lawsuits or damages are covered under E&O insurance if your business is accused of mistakes or oversights that caused your clients to take a financial hit.
What is not covered by errors and omissions insurance
Liability claims related to dishonest actions, losses your businesses intentionally caused, and other types of liability claims are typically not covered under E&O. Other types of liability claims like discrimination or product liability complaints are also not covered.
Protect what keeps you in business
Who needs errors and omissions insurance?
In general, businesses that provide fee-based services to customers may need errors and omissions insurance. Unless it’s already required from a client, business partner or licensing board, those who work in insurance, investments, real estate and accounting will benefit from this coverage in case a mistake is made on behalf of a client.
Some examples of professionals that may benefit from errors and omissions insurance are:
- Accountants
- Engineers
- Educators
- Website developers
- Consultants
- Real estate agents
- Barbershops/hair salons
- Pet groomers
How much does errors and omissions insurance cost?
Allstate offers several options with limits ranging from $10,000 to $1 million. Several factors affect the premium cost of E&O insurance, including:
- Policy limits
- Type of business industry
- Where the business operates
- Number of employees
- History of liability claims against the business