Business Insurance
Errors and Omissions Insurance (E&O)
E&O insurance protects businesses and professionals from claims arising from mistakes, oversights, or failure to deliver promised services.
Last reviewed: May 2026 · Editorial methodology
Definition
Errors and Omissions (E&O) insurance is the industry-standard name for professional liability coverage in fields such as technology, real estate, mortgage brokerage, and the insurance industry itself. A software development firm might pay $2,000–$8,000/year for E&O, while a real estate agent may pay $1,000–$3,000/year through their brokerage's group policy. E&O covers the cost of defending a claim and paying damages if a client proves your error or omission caused measurable financial loss — for example, a mortgage broker who failed to disclose a fee structure resulting in client harm. Like all professional liability policies, E&O is typically claims-made, so the retroactive date on the policy must reach back far enough to cover historic work. Tech companies should ensure their E&O policy specifically includes technology professional services, as some general E&O forms exclude software products or SaaS platforms. Brokers who switch carriers without purchasing tail coverage create a dangerous gap that leaves past work unprotected.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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