Errors and omissions insurance—also known as E&O insurance, indemnity insurance, or professional liability insurance—is a form of professional liability insurance designed to protect employers and employees against customers’ or clients’ claims of negligence or inadequate work. It protects your business if you are sued for negligently performing your services—even if you didn’t make a mistake or do anything wrong.

A customer could sue you because you did something you shouldn’t have, or you didn’t do something you should have, in the course of providing professional services.

For example, a freelance writer or consultant who creates marketing and information content for websites might be sued by a client who is sued for copyright infringement or forced to remove the content from their website because it infringes another person’s copyright. An E&O policy might protect the freelance writer or consultant from the claim they were negligent in creating the content that infringes another person’s copyright—paying the cost of defending the case and any settlement or court judgment in the matter, subject to policy limits.

Industries with service providers who often purchase E&O insurance include:

• Architecture and engineering

• Construction

• IT/technology

• Real estate (agents, inspectors, surveyors, appraisers)

• Consulting

• Marketing (graphic designers, web designers, photographers, event planners, promoters)

• Health and beauty

• Fitness (instructors, teachers, trainers)

• Retail

• Therapy

In Florida, Errors and Omissions (E&O) insurance is a type of professional liability insurance that safeguards businesses and professionals against claims of negligence or substandard work by their clients. This insurance is crucial for professionals who provide services or advice, as it covers legal defense costs and settlements or judgments if they are sued for alleged mistakes or omissions in their work, even if no actual error occurred. E&O insurance is particularly relevant for industries where the risk of such claims is higher, including architecture, engineering, construction, IT, real estate, consulting, marketing, health and beauty, fitness, retail, and therapy. Florida does not mandate E&O insurance for all service providers, but certain professionals, like real estate agents and insurance agents, may be required by state statutes or industry regulations to carry this insurance. It's important for professionals in Florida to consider their industry's specific risks and requirements when determining whether to obtain E&O insurance.