Professional Liability vs Errors & Omissions (E&O) Insurance: Are they the same?

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Professional Liability and Errors & Omissions insurance are generally the same type of liability coverage. The name for this type of business insurance often depends on the industry you work in, or your insurance provider.  

It is commonly purchased by and for businesses that sell advice, expertise, or professional services, such as real estate agents, consultants, accountants, etc.  It could protect your business if you're accused of making a professional mistake, professional negligence, oversight, or omission that costs a client money or causes them financial harm.

In general, licensed or credentialed professions are more likely to use professional liability, while consulting, tech and more transactional service industries might refer to it as E&O coverage.

Examples of professionals who might purchase professional liability insurance, include:

  • Accountants
  • CPA's
  • Architects
  • Engineers
  • Financial Advisors
  • Surveyors
  • Child care providers
Examples of professionals who might purchase Errors & Omissions Insurance, include:
  • IT consultants
  • Software developers
  • Marketing and ad agencies
  • Public relations firms
  • Real estate agents and brokers
  • Insurance agents
  • Mortgage brokers
  • Property managers
  • Notaries
  • Staffing agencies
Types of professional mistakes that might be covered with professional liability or E&O include:

  • Work error or miscalculation (design mistake leading to costly changes during a project).
  • Oversights: A key detail is missed and client claims it cost a financial loss.
  • Missed deadlines: A project runs late, and client says the delay affected their timeline/budget.
  • Professional negligence: A client alleges your work fell short of professional standards.
  • Misleading information: A client claims statements, projections or representations you made were not accurate or incomplete, and it led to financial loss or harm.
Policy details can vary, so it's important to review your coverage and exclusions carefully, and ask your insurance agent if you have any questions or concerns.

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