Honestly, I never thought much about Errors and Omissions insurance. Not until that one client emailed me at 2:14 a.m. with “URGENT” in all caps because they said I cost them $14,000. That was a wake-up call.
E&O coverage, it’s not just some boring corporate thing people do—it might literally be the reason you don’t lose your shirt one day.
See, the idea is pretty simple: if you mess up professionally—like forget something important, or give someone bad advice, or even just send the wrong file—E&O is supposed to cover your butt. Financially, I mean. Not literally.
Some folks call it professional liability insurance. Same thing, different flavor.
Back when I started consulting, I thought: I’m careful. I double-check everything. But even careful people mess up—especially when they’re juggling 14 tabs and working on caffeine and vibes.
And then boom: something slips. A detail. A deadline. Or worse, a promise you didn’t realize you made.
That’s where this kind of insurance shows up
I remember reading the fine print (okay, skimming it, let’s be real), and seeing that it actually protects you from more than just lawsuits. It can pay legal fees, cover settlements, maybe even save your reputation. Like, if someone sues you for “professional negligence” (whatever that means in their lawyer’s mind), you’re not totally on your own.
You might think, “Oh, but I work in tech. I don’t need this.” You do. Trust me.
You build software? One bug = client loses traffic = lawsuit city.
You’re a real estate agent? Imagine forgetting to disclose a flood zone. See you in court.
Design websites? One typo on a major client’s homepage could = 5-figure revenue loss, and guess what? You’re getting that angry email.
I’ve seen a graphic designer get sued for the wrong shade of blue. No joke.
Here’s the kicker though: E&O doesn’t cover everything. There’s a bunch of stuff it won’t touch—like, if you mess up on purpose (obviously), or if someone trips in your office, or data breaches (you need cyber insurance for that).
Also—tiny thing nobody tells you—most E&O policies are claims-made. That means the incident and the claim have to happen while you’re covered. So if someone sues you after your policy ends? No bueno. Unless you buy tail coverage. Which sounds weird but is important.
It’s wild how many people don’t know this. I didn’t, until like… a week before a claim hit me.
So who’s supposed to buy this kind of insurance? Just about anyone who sells their brain.
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Freelancers, yup.
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Designers? Yes.
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Consultants, coaches, advisors—100%.
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Developers. You too.
Even if you never get sued, some clients will literally not sign a contract with you unless you show them proof of E&O.
And cost-wise? Not that bad actually. I pay less per month than I spend on mediocre coffee. Rates vary, but small biz? Probably $40–$100/month depending on your industry and how risky you look on paper.
You might be like, “But I’m just getting started.” Cool. All the more reason to not have a $30k lawsuit derail you in year one. People sue for the weirdest things. Even stuff that’s not your fault. You still gotta defend yourself, and that ain’t free.
Here’s something else. This type of insurance? It makes you look like you have your act together. Clients notice. Especially corporate ones.
I didn’t used to talk about it, but now when a new client asks for my COI (certificate of insurance), I email it before they even ask. Feels kinda legit.
TL;DR? It’s not about if you mess up. It’s when.
Even a false claim can wreck your month. Or your year. And E&O insurance—though kinda boring—is weirdly comforting once you have it. Like a seatbelt. You hope you never need it. But when you do, you really do.
If I had known what I know now back when I was still using a Gmail address for my business… yeah, I’d have bought it way earlier.
Anyway. I didn’t write this to scare you. Just saying: think about it.
And maybe look into it before the wrong kind of email hits your inbox at 2:14 a.m.