Who actually needs E&O
Anyone paid for advice or professional services where a mistake costs the client money: consultants, agents, accountants, designers, IT professionals. General liability covers bodily injury and property damage — it does NOT cover financial loss from your work product, which is the far more common claim.
- • Claims-made policies: you need continuous coverage (or tail coverage) to stay protected.
- • Many contracts require $1M E&O before you can start work.
- • Defense costs count toward the limit on some policies — check 'defense outside limits'.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
How much does E&O insurance cost for a consultant?
A solo consultant with $150K revenue typically pays $600–1,500/year for $1M of coverage. Higher-risk professions (financial advisors, engineers) pay 2–4× more.
Is E&O the same as professional liability?
Yes — different names for the same coverage. 'E&O' is common in insurance, real estate, and finance; 'professional liability' and 'malpractice' (medical) elsewhere.
What does E&O not cover?
Intentional wrongdoing, criminal acts, bodily injury (that's general liability), employee lawsuits (EPLI), and cyber incidents (cyber liability). E&O is strictly for financial-loss claims arising from your professional services.
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