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 Wyoming, Errors and Omissions (E&O) insurance is a type of professional liability insurance that safeguards businesses and their employees from claims of negligence or substandard work by clients or customers. This insurance is crucial for professionals who provide services or advice, as it covers legal defense costs and any settlements or judgments, up to the policy limits, if a lawsuit arises from alleged mistakes or omissions in their work. While there is no specific Wyoming statute mandating E&O insurance for all service providers, certain professions may be subject to regulatory requirements for carrying such insurance. For instance, real estate professionals, including agents and appraisers, are often required by state regulatory boards to have E&O insurance as a condition of licensure. Other industries, such as architecture, engineering, IT, consulting, and health and beauty, also commonly obtain E&O insurance to mitigate the financial risks associated with professional liability claims. It's important for businesses and individuals in service-oriented industries to consider E&O insurance to protect against potential legal actions that could arise from their professional activities.