Is Professional Liability Insurance the Same as Errors and Omissions Insurance?

Understanding the right insurance coverage is essential for protecting your business or professional practice. Sometimes, there is confusion about whether professional liability insurance and errors and omissions (E&O) insurance are the same thing. While these terms are often used interchangeably, there may be some nuances to consider.

What Is Professional Liability Insurance?

Professional liability insurance is designed to protect businesses and individuals who provide professional services or advice. This coverage helps safeguard against claims of negligence, mistakes, or failure to perform professional duties that result in a client’s financial loss. Many professions—including consultants, architects, and healthcare providers—may require this type of insurance to operate or to meet client contract requirements.

What Is Errors and Omissions (E&O) Insurance?

Errors and omissions insurance is a specific type of professional liability coverage. E&O insurance focuses on protecting professionals against claims that their advice, services, or recommendations caused a client harm due to an error or oversight. Commonly, E&O insurance is associated with fields like real estate, insurance, accounting, and technology services.

Are They the Same?

In practice, professional liability and E&O insurance may effectively refer to the same sort of coverage. The main difference is often in the terminology used by different industries and insurers. For example:

• “Professional liability insurance” is a broader term, often used for medical, legal, or consulting professions.
• “Errors and omissions insurance” is more common in fields like real estate, insurance, and financial services.

Both types of coverage can help with legal defense costs, settlements, and judgments if a client alleges your work caused them harm.

Learn More

Our team at Alliance General Insurance Agency understands the unique risks faced by Colorado professionals and business owners. We work closely with our clients to identify the right liability coverage to fit their specific industry and regulatory requirements.

Contact us today to discuss your options and get the protection you need.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.