errors and omissions
Errors and omissions (also referred to as E&O) is a form of professional liability insurance that protects policy-holding professionals from financial losses arising out of negligent acts, mistakes, or failures to perform professional duties. The policy provides coverage for damages caused by inadvertent errors or omissions in the course of delivering professional services, but it does not cover intentional misconduct, fraud, or criminal acts.
A policy-holding professional is an individual or entity that provides specialized services or advice; such as accountants, attorneys, real-estate agents, and brokers, who maintain an active E&O policy to insure against professional negligence. Such professionals owe duties of competence and care within their field, and E&O coverage helps to protect them from civil liability for unintended mistakes or oversights that cause client harm. Attorneys commonly carry E&O coverage as part of their legal malpractice insurance, which functions as a specialized form of professional liability protection within the legal profession.
[Last reviewed in October of 2025 by the Wex Definitions Team]
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