Protect Your Business from Costly Mistakes

Errors & Omissions (E&O) insurance—sometimes called professional liability insurance—protects businesses and professionals from claims related to mistakes, negligence, or inadequate work. If a client accuses you of providing incorrect advice, failing to deliver promised services, or making an error that causes financial harm, E&O insurance helps cover legal fees, settlements, and damages.

Whether you’re a contractor, consultant, real estate agent, insurance professional, IT specialist, or any service provider, an unexpected claim could cost you thousands—or even force you out of business. E&O coverage helps keep you protected.

Why Might You Need Faulty Workmanship Coverage?

Many business owners assume that E&O insurance covers all service-related issues, but that’s not always the case. One of the biggest gaps in coverage for tradespeople, contractors, and skilled professionals is faulty workmanship—meaning mistakes in how work is performed, installed, or built.

For example:

✅ If a financial advisor miscalculates an investment risk, resulting in financial losses, E&O insurance covers it.

🚫 But if a general contractor installs flooring improperly, causing structural damage, that’s considered faulty workmanship—which may not be covered under a standard E&O policy.

This is why faulty workmanship endorsements or specialized contractors’ E&O coverage exist. These policies provide additional protection for construction-related work, ensuring you’re covered if your work results in defects or damages.

Who Needs Errors & Omissions Insurance?

E&O insurance is essential for anyone who provides advice, services, or specialized work. Common industries that benefit from E&O coverage include:

🔹 Contractors & Tradespeople – Plumbers, electricians, HVAC techs, general contractors who could face faulty workmanship claims.

🔹 Real Estate Professionals – Agents and brokers handling contracts, disclosures, and transactions.

🔹 Insurance Agents & Financial Advisors – Protecting against claims of misrepresentation or failure to advise clients properly.

🔹 Consultants & Marketing Professionals – Ensuring coverage for errors in strategy or implementation.
🔹 Tech & IT Professionals – Protecting against software failures, coding errors, or security mishaps.

If your business relies on expertise, recommendations, or service-based work, you could be held liable for any perceived mistake—whether you made one or not.

What Does E&O Insurance Cover?

✅ Legal Defense Costs – Attorney fees, court costs, and legal expenses.

✅ Settlements & Judgments – If your business is found liable for financial damages.

✅ Claims of Negligence – Allegations of professional mistakes, failure to deliver services, or misrepresentation.

✅ Faulty Workmanship (if covered) – If your policy includes a workmanship endorsement, it may cover installation errors or subpar construction work.

What’s NOT Covered?

🚫 Intentional wrongdoing or fraud

🚫 Property damage or bodily injury (covered under general liability insurance)

🚫 Employee injuries (covered under workers’ compensation)

Get a Customized E&O Insurance Quote

At Abbott Insurance, we specialize in finding the right coverage for professionals and small businesses in Missouri and Kansas. Whether you need basic E&O protection or additional faulty workmanship coverage, we can tailor a policy that fits your risks and budget.