Why this shows up
Contracts may use E&O, errors and omissions, and professional liability as similar terms, but the exact policy still needs to fit your services.
What this changes for you
When you see E&O language, slow down and connect the words to the work you promised to do. The key question is whether a client could claim your mistake, omission, advice, or deliverable caused a loss.
What to check first
- Does the contract say E&O, errors and omissions, professional liability, or technology E&O?
- Is the required limit shown per claim, aggregate, or both?
- Has your broker compared your policy against the wording?
Example contract wording
Vendor shall maintain errors and omissions insurance covering acts, errors, or omissions in the performance of services.
What to do next
- Record the required limit and any timing requirement.
- Identify whether the contract is asking for general E&O or technology E&O.
- Send the exact wording to your broker before making commitments to the client.
Questions to ask
- Can you compare my E&O policy against this exact wording?
- Does the policy cover my type of work?
- Does the client need a certificate or a copy of the policy language?
Common mistake
Assuming E&O is a single standard product. The policy language can vary a lot by profession and carrier.