Also known as: E&O · E&O insurance · professional liability · errors and omissions
Coverage that pays to defend and settle claims that your professional work, product, or service failed a client or caused them a financial loss.
Errors and Omissions (E&O) insurance, also called professional liability, covers claims that your company made a mistake, missed something, or failed to deliver in the professional services or products it provides, causing a client a financial loss. It funds legal defense and settlements even when the claim is groundless. For technology and software startups, E&O is usually written as Technology E&O, which combines professional-services errors with the failure of your software or platform. Client contracts and enterprise MSAs frequently require it before you can close a deal.
E&O insurance, also called professional liability, covers claims that your company's professional work, service, or product failed a client or caused them a financial loss. It pays legal defense and settlements, including for claims that turn out to be groundless. Technology companies typically buy it as Technology E&O, which also covers the failure of their software or platform.
General Liability covers third-party bodily injury and physical property damage. E&O covers purely financial losses caused by your professional work or product failing, which GL specifically excludes. A client who trips at your office is a GL claim; a client who loses money because your software failed is an E&O claim.
Yes, usually as Technology E&O. If your product processes data, integrates with a customer's systems, or carries SLA commitments, a failure or outage can trigger a client claim that only Tech E&O responds to. Enterprise customers frequently require it in the contract before they will sign.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.