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 Indiana, Errors and Omissions (E&O) insurance is a type of professional liability insurance that serves to protect businesses and individuals who provide professional services from claims of negligence or inadequate work. This insurance is particularly important for professionals who could be held liable for errors, omissions, or negligence in the course of their work, even if no mistake was actually made. E&O insurance can cover legal defense costs, settlements, and court judgments up to the policy limits. While Indiana does not mandate E&O insurance for all service providers, certain professionals, such as real estate agents and appraisers, may be required by state statutes or regulatory bodies to carry this insurance. Additionally, professionals in industries like architecture, engineering, IT, consulting, marketing, and health services commonly obtain E&O insurance to mitigate the risks associated with their practices. It's important for professionals in Indiana to consider their industry standards, client expectations, and potential legal exposures when deciding whether to purchase E&O insurance.