Gisela Castro

CEO , Complete Insurance Agency

Errors and Omissions Insurance

What is Errors and Omissions Insurance and Why Your Business Should Have It


Businesses obtain insurance to protect against liabilities and ensure that their business can continue running even in the middle of a lawsuit or in the aftermath of a theft, inventory damage and other incidents. Errors and omissions insurance is one type of commercial insurance every business should consider.

What is Errors and Omissions Insurance Coverage?

Errors and omissions insurance (E&O) is professional liability insurance that protects the following for negligence or inadequate work:

  • Companies
  • Workers
  • Other professionals

Professionals that offer advice, such as a lawyer, or services, such as a landscaper, are generally required to have E&O insurance.

E&O insurance offers substantial coverage, but it doesn’t protect against employee injuries or illness, bodily injury, property damage, discrimination, harassment or illegal acts or purposeful wrongdoing.

Why Your Business Needs Errors and Omissions Insurance?

Mistakes happen, and as a business hires more employees and expands, the risk of negligence increases. When a lawsuit is filed, the E&O insurance will often cover the following costs:

  • Attorney fees
  • Administrative fees
  • Court costs
  • Settlement costs

The settlements will be up to the limit specified within your policy. All business professionals can benefit from this form of business insurance, including:

  • Accountants
  • Consultants
  • Contractors
  • Dentists
  • Doctors
  • Insurance agents
  • Lawyers
  • Photographers
  • Videographers

Fees covered by the insurance policy go beyond a settlement. Even if the court rules in your favor, there’s a chance that the judge will not order your legal fees be paid. Insurance can cover these expensive fees to reduce the burden on your business.

Policies will protect against negligence, omissions, misrepresentation, inaccurate advice, violation of good faith and errors with any advice given.

What to Consider When Obtaining E&O Insurance

Policy limitations and exemptions must be considered when a policy is written. It’s important to discuss your business’ needs and operations with an insurance agent to provide the most coverage possible.

You may need to have a custom plan drafted to ensure that your business is covered if the incident stems from temporary workers, work prior to the E&O policy’s start date or other claims. Retroactive dates can be added for any incident that may have occurred during the period between the retroactive date and the start date of the policy.

The policy is not a blanket policy that will cover all liabilities and criminal prosecution. Instead, you’ll need to obtain numerous insurance policies to cover all aspects of your business’ operations. Higher limits will raise rates. Business location will also play a role in premium rates.

If your company is at a high risk of litigation or has been involved in multiple litigations in the past, insurance premiums are likely going to be more expensive. You may also receive less favorable terms. Businesses can keep costs down through proper employee training and communication with customers to ensure that they’re satisfied with your service.

Errors and omissions insurance is an important part of a professional business provider’s business insurance. If you make a mistake or negligence occurs, even if it was the result of a temporary worker, insurance can help you protect your business from significant financial loss.

Call Complete Insurance Agency at (305) 667-7717 to learn more.



Our team is dedicated to simplifying the insurance buying process for all of our customers throughout South Florida.



+1 (305) 667-7717


717 Ponce de Leon Blvd, Suite 327, Coral Gables, FL