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    Differences Between E&O & Professional Liability

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    what is the difference between e&o and professional liability insurance

    We’re often asked if errors and omissions is the same as professional liability insurance and what is the difference between E&O and professional liability insurance.

    The two terms are used interchangeably and refer to the same insurance product. However, if you want to get technical, E&O is a subset of the personal liability umbrella.

    When you visit an insurance company in Canada, a broker or insurance professional usually assumes you’re looking for the same product using either term.

    Essentially, you’re looking to protect your small (or large!) business from the cost of legal claims when you’re negligent, make a professional mistake, leave something out (omission), provide incorrect advice, don’t live up to a particular standard of service, and more.

    The remainder of this article goes over professional liability insurance, what it covers, and how much you can expect a policy to cost.

    What does professional liability insurance cover?

    Professional liability coverage protects business owners from the cost of lawsuits, including legal fees, damage awards, settlement costs, and more, if a client sues you for the provision of negligent professional services or if your services weren’t up to par.

    This includes events such as missing a deadline, losing client data, and really any mistake that leads to a client’s financial loss.

    For example, suppose you’re a personal trainer. If you push a client too hard and they injure themselves, they might sue. You could be financially liable for their pain and suffering, lost wages, medical costs, etc.

    Professional liability insurance, in this case, covers your legal fees and any of those pain and suffering, lost wages, and medical fees.

    An E&O policy won’t cover you if the following occur:

    • Claims made outside of your policy coverage period

    • Intentional acts or purposeful false advertising

    • Liability is between you and an employee


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    It’s also important to understand that professional liability insurance only covers lawsuits related to negligent provisions of services, errors and omissions, etc.

    It doesn’t cover lawsuits related to injuries or property damage that occur on your premises. For example, if someone slips at your office. A general liability policy covers these types of lawsuit costs.

    Further, a professional liability insurance won’t cover damages resulting from hackers or viruses. You need a cyber liability insurance policy to cover these costs.

    Do I need professional liability insurance?

    Often, clients stipulate that you need a minimum amount of professional liability insurance. This ultimately protects the client from lawsuits or costs that result from your negligence.

    It also ensures that your client can sue and receive compensation from your policy if you fail to provide proper services.

    But if a policy isn’t mandatory, it’s still an intelligent choice to purchase E&O coverage. The right insurance provides peace of mind that you won’t have to fork over hundreds of thousands of dollars in legal fees if you’re ever sued.

    Related: How much liability insurance should I have

    How much does errors and omissions insurance cost?

    The easiest way to determine the cost of a policy is to get a free online quote with APOLLO. We ultimately determine your premium based on various factors:

    • The number of employees you have

    • Your business’ size

    • Location

    • Lines of business

    • Amount of coverage, coverage scope, and deductible

    Professional liability and E&O coverage are two terms that describe a way to mitigate the risk of lawsuits resulting from the provision of negligent services.Errors and omissions insurance is a vital part of your business insurance plan. It could ultimately save you from paying hundreds of thousands of dollars in legal costs out of pocket.Get a free quote and buy online in under five minutes with APOLLO today!


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    We can help you understand the benefits of Business Insurance, and get the kind of protection you need in minutes.

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    Originally published January 25, 2022, updated August 25, 2023

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