What is typically excluded from an E&O policy?

Errors and Omissions (E&O) insurance is essential for professionals who provide services, advice, or expertise. While it protects against claims of negligence, mistakes, or omissions, it does not cover every type of risk. Understanding E&O policy exclusions helps you avoid unexpected liabilities and ensures you have the right coverage.

Common Exclusions in an E&O Insurance Policy

1. Fraud and Intentional Misconduct

E&O insurance does not cover claims arising from fraudulent, dishonest, or intentional wrongdoing. If a professional deliberately misleads a client, the insurer will deny coverage.

2. Criminal Acts

Any illegal activity or criminal act committed by you or your employees is excluded from coverage. If a lawsuit arises due to such actions, legal and financial consequences fall solely on the policyholder.

3. Bodily Injury and Property Damage

E&O insurance covers financial losses caused by professional mistakes but does not cover bodily injuries or property damage. For these risks, businesses need general liability insurance.

4. Employment-Related Claims

Issues like wrongful termination, discrimination, or harassment are excluded. Employers should obtain employment practices liability insurance (EPLI) to cover these risks.

5. False Advertising and Intellectual Property Infringement

If your business is sued for copyright infringement, trademark violations, or misleading advertising, E&O insurance will not apply. A media liability policy or general liability insurance may be necessary.

6. Contractual Liabilities

E&O policies typically do not cover breach of contract unless negligence is involved. If a contract explicitly guarantees a specific outcome and you fail to deliver, the insurer may deny the claim.

7. Cybersecurity and Data Breaches

E&O insurance does not protect against hacking, cyberattacks, or data breaches. Businesses handling sensitive customer data should consider cyber liability insurance.

8. Regulatory Fines and Penalties

If your business is fined due to non-compliance with industry regulations, those costs are not covered by E&O insurance. You may need regulatory liability coverage.

How Much Does E&O Insurance Cost?

E&O insurance costs vary based on factors like industry, business size, and coverage limits. Here are some general price estimates:

Protect Your Business with the Right Coverage

E&O insurance is essential, but it does not cover every risk. At Toby Hansen Agency, we help businesses find comprehensive coverage that fills these gaps. We work with nearly 100 carriers to secure the best rates and policies.

📞 Get a free quote today and ensure your business is fully protected!

FAQ: E&O Insurance Exclusions

1. Does E&O insurance cover missed deadlines?
Yes, if a missed deadline results in financial loss for a client, E&O insurance typically covers it.

2. Can I add coverage for excluded risks?
Yes, additional policies like cyber liability or general liability insurance can cover excluded risks.

3. What happens if a claim is made for intentional misconduct?
Insurers will deny the claim if intentional wrongdoing is proven, and legal expenses will be your responsibility.

4. Do I need both E&O and general liability insurance?
Yes, E&O covers professional mistakes, while general liability covers bodily injury and property damage.

5. How do I get the best E&O insurance for my business?
Contact Toby Hansen Agency for a free consultation and get tailored coverage at the lowest price.

Don’t leave your business exposed—get insured today!