Errors and Omissions (E&O) Insurance

Protect Your Business Reputation—and Your Bottom Line

Even the most experienced professionals can face claims of mistakes, missed details, or unmet expectations. Errors and omissions insurance (E&O insurance) protects your small business against the legal and financial fallout of professional service disputes. At Heffernan Insurance Brokers, we help businesses secure the right E&O coverage, tailored to your industry, risk level, and budget.

What Is Errors and Omissions Insurance?

Errors and omissions insurance (also known as professional liability insurance) covers claims that your business made a mistake, gave faulty advice, or failed to deliver a promised service. It protects you against:

• Legal fees
• Court costs
• Settlements or judgments
• Investigative and administrative expenses

Whether a claim is justified or not, E&O insurance helps cover the cost of defense, so one allegation doesn’t jeopardize everything you’ve built.

Also called:

• E&O insurance
• Professional liability
• E&O liability insurance

If you offer professional advice, services, or handle sensitive information, E&O coverage is essential.

Who Needs E&O Insurance?

E&O insurance is critical for any business that provides professional guidance or services. That includes:

• Real estate agents and brokers
• Insurance agents and agencies
• Consultants and coaches
• IT professionals and tech firms
• Accountants and financial advisors
• Marketing and creative professionals

Mistakes happen—even with the best systems in place. An errors and omissions policy gives your small business essential protection and peace of mind.

What Does E&O Insurance Cover?

Errors and omissions insurance typically covers claims related to:

• Professional negligence or oversight
• Missed deadlines or undelivered work
• Errors in service delivery or documentation
• Breach of contract or fiduciary duty
• Confidentiality or privacy violations

When a client says you caused financial harm—intentionally or not—E&O coverage helps cover your legal defense and any resulting settlements.

What Doesn’t E&O Insurance Cover?

While broad, E&O insurance doesn’t cover every risk. It typically excludes:

• Employee injuries (covered by workers’ comp)
• Third-party Bodily injury or property damage (covered by general liability)
• Fraud, criminal activity, or intentional wrongdoing
• False advertising or deceptive marketing
• Data breaches (covered by cyber liability insurance)

Heffernan can help you build a protection plan that fills all gaps, starting with the right professional liability insurance and expanding to broader coverage.

E&O Insurance by Industry

Real Estate E&O Insurance

E&O insurance for real estate professionals covers claims related to:

• Misrepresentation of property value or condition
• Failure to disclose known defects
• Contract or paperwork errors
• Escrow or closing issues

Heffernan offers real estate E&O insurance tailored to brokers, agents, and appraisers—designed to meet lender requirements and state mandates (including E&O insurance California requirements).

E&O Insurance for Insurance Agents

Even seasoned insurance professionals can face claims like:

• Failure to recommend appropriate coverage
• Misrepresentation of policy terms
• Missed deadlines or lapses in service
• Breach of fiduciary duty

We provide insurance agent E&O policies for independent brokers and larger agencies, balancing affordability with robust protection.

How Much Does E&O Insurance Cost?

Your E&O insurance cost depends on:

• Industry and services offered
• Business size and revenue
• Claims history
• Policy limits and deductibles
• Location and regulatory requirements

Typical range: $500 to $2,500 annually for small businesses.

Heffernan will match you with competitive quotes from A-rated E&O insurance carriers—customized for your risk level and profession.

What to Look for in the Best E&O Insurance

Not all policies offer the same protection. Look for:

• Broad definitions of covered services
• Custom endorsements for your industry
• Legal defense coverage outside policy limits
• Fast claims service
• A financially strong, reputable carrier

At Heffernan, we vet all our errors and omissions insurance companies to ensure you get reliable support when it matters most.