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Small Business Articles

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Both business liability insurance, like a general liability policy, and errors and omissions insurance (also called E&O insurance or professional liability insurance) help protect your company from lawsuits and the associated costs. However, they’re designed to address different kinds of risks.

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Small business owners who provide professional advice or services often ask, “Do I need errors and omissions insurance?” The answer in virtually all cases is, “Yes, you do.” Errors and omissions insurance (sometimes written as E&O or E and O insurance) is professional liability insurance that protects businesses from claims by clients that the company’s employees made a mistake or neglected certain required actions.


Professional liability insurance is coverage for individuals and organizations that provide professional advice or services in the event that a client alleges a mistake or oversight was made. Also called errors and omissions insurance (or E&O for short), it’s critically important if your business is focused on providing expertise.