General Contractors
Design errors, project delays
The Contract Savers
Protect Your Expertise From "Bad Advice" Claims
Errors & Omissions coverage for Consultants, Tech Firms, and Agencies. Protect your business from claims of negligence and "bad advice"—the insurance that saves your contracts.
Popular Coverage
Home Services
E&O for Home Service Professionals
Contractors, electricians, plumbers, HVAC technicians, landscapers, and home inspectors face unique professional liability risks every day.
When a homeowner claims your work caused damage, your design was faulty, or you missed a critical issue—E&O coverage pays for your legal defense and any settlements, protecting your business and personal assets.
Electricians
Code compliance, wiring issues
Plumbers
Installation failures, water damage
HVAC Technicians
System failures, inefficiency claims
Landscapers
Design disputes, plant failures
Home Inspectors
Missed defects, incomplete reports
Understanding Professional Liability
The "Financial Loss" Distinction
General Liability covers bodily injury—if a client slips and falls in your office. Professional Liability (E&O) covers financial loss—if your advice, service, or work product causes a client to lose money.
A bad marketing strategy that "tanks their Q4 sales." Software that crashes their operations. A missed filing deadline that costs them a deal. These are E&O claims—and GL won't pay a dime.
E&O Coverage Essentials
- Negligence & "Bad Advice" Claims
- Breach of Contract Allegations
- Missed Deadlines & Delays
- Defense Costs (Often Outside the Limit)
- Copyright Infringement (Media Liability)
- Cyber Extension (Tech E&O)
The Hidden Traps of E&O Insurance
The Claims-Made Trigger
Critical Education: Unlike Auto or Home insurance, E&O is "Claims-Made." You must be insured both when the work was performed AND when the lawsuit is filed. Cancel your policy? You're exposed for years of past work—even if you did nothing wrong.
Tail Coverage (ERP)
The Retirement Trap: If you retire, sell your business, or cancel your policy, you stop coverage for all past work immediately. You must buy "Tail Coverage" (Extended Reporting Period) to stay protected—often 200-300% of your annual premium.
The Contract Requirement
Chicago Corporate Clients: Most enterprise clients (and the City of Chicago) require you to carry $1M or $2M in E&O limits before they will sign a Master Service Agreement (MSA). No E&O certificate? No contract. We make sure you meet these requirements.
We Understand Insurance Requirements: We've read hundreds of MSA "Insurance Requirements" sections. We know what your corporate clients want, and we'll make sure your policy meets their exact specifications—no back-and-forth with procurement.
Technology & Software (Tech E&O)
Beyond Standard E&O: The Tech Hybrid
For Chicago's booming tech sector, standard Professional Liability isn't enough. Tech E&O is a hybrid policy that blends "Failure to Deliver" coverage with "Data Breach" protection.
If your software bug crashes a client's server, your API integration fails and costs them revenue, or your SaaS platform goes down during their critical sales period—Tech E&O pays. It bridges the gap between professional services and technology products.
Software Failures
Code bugs, system crashes, integration errors.
Data Breach Response
Notification costs, forensics, credit monitoring.
Service Outages
SaaS downtime, hosting failures, cloud issues.
IP Infringement
Unintentional copyright or patent claims.
Consultants & Agencies
The "Advice" Liability
Marketing Agencies: If a client says your campaign strategy "ruined their Q4 sales," they can sue for millions in lost revenue. Even if your work was solid, defending yourself costs $50,000+ in legal fees.
Management Consultants: Your strategic recommendations carry weight. If a restructuring plan you designed leads to layoffs and lawsuits, you could be named in the suit.
Recruiters & Staffing: Place a candidate who falsified credentials? Recommend someone who later embezzles? Your firm is in the crosshairs.
Common Consultant Claims
- "Your advice cost us the deal"—Failed M&A guidance.
- "Your strategy tanked our revenue"—Marketing ROI disputes.
- "You missed the deadline"—Project delays with damages.
- "You copied their design"—Unintentional IP infringement.
Industries We Specialize In
Marketing & Advertising Agencies: Campaign failures, media placement errors, trademark issues. We include Media Liability coverage.
Management Consultants: Strategic advice claims, implementation failures, project overruns.
HR & Recruiting Firms: Bad hires, discrimination claims arising from placements, background check errors.
Accountants & Bookkeepers: Tax preparation errors, audit failures, financial reporting mistakes. (Note: CPAs need specialized CPA E&O).
Real Estate & Title Professionals
Illinois License Defense: For Realtors and Title Agents, we cover not just the lawsuit, but also the defense costs if a complaint is filed against your license with the IDFPR (Illinois Department of Financial and Professional Regulation). Your license is your livelihood—we protect it.
Real Estate Professionals
Real Estate Agents: Failure to disclose defects, misrepresentation of property condition.
Property Managers: Tenant disputes, maintenance negligence, lease administration errors.
Appraisers: Valuation errors, overstatement or understatement of value.
Home Inspectors: Missed defects, incomplete inspections, report errors.
Coverage We Provide
- Real Estate Agent E&O
- Title Agent E&O
- Appraiser E&O
- Property Manager E&O
- Notary E&O
Defense Costs: Inside vs. Outside the Limit
The Difference That Matters Most
A cheap E&O policy puts legal fees "Inside the Limit"—meaning your $1M in coverage gets burned up paying lawyers before there's anything left for a settlement. A $300,000 defense bill leaves you with only $700,000 for the actual claim.
We look for policies with "Defense Outside the Limit" (also called "Defense in Addition"). This gives you a separate war chest for lawyers—your full $1M stays intact for settlements or judgments.
Inside = Shared Pool
Outside = Separate Pool
We Find "Outside" Policies
The Math: If you're sued for $800,000 and defense costs $250,000, an "Inside" policy leaves you $50,000 short. An "Outside" policy pays both in full. That's the difference between survival and bankruptcy.
Quick Example
- $1M "Inside" Policy: $250K defense + $750K left for claim
- $1M "Outside" Policy: $250K defense + $1M left for claim
- Difference: $250,000 more protection
- "Outside" costs ~10-15% more—worth every penny.
E&O Add-Ons & Enhancements
Cyber Liability Bundle
Combine E&O with full Cyber coverage—data breach response, ransomware, BIPA protection—in one policy.
Directors & Officers (D&O)
Protect your leadership team from shareholder suits, fiduciary claims, and management decisions gone wrong.
Excess E&O Limits
Need $5M or $10M limits for enterprise contracts? We layer excess policies to meet any requirement.
Professional Liability FAQs
General Liability covers physical damage—bodily injury (someone slips in your office) and property damage (you break a client's equipment). Professional Liability (E&O) covers financial loss from your professional services—bad advice, missed deadlines, errors in your work product, or breach of contract. If a client sues you because your consulting recommendation "cost them millions," GL won't pay. You need E&O.
The Retroactive Date is when your E&O coverage history began. Claims-Made policies only cover work performed after this date. If you switch carriers and the new policy has a "fresh" retro date, you lose coverage for all prior work. We fight to keep your original retroactive date active when moving policies—this protects years of past projects from future claims.
Yes—often more than employees need it. As a freelancer or sole proprietor, you don't have corporate protection. A lawsuit hits your personal assets directly. Many enterprise clients also require 1099 contractors to carry their own E&O coverage before signing contracts. We offer affordable E&O policies starting around $500/year for freelancers—far less than one hour of legal defense fees.
Only if specifically endorsed. Standard E&O covers professional negligence—not data breaches. You need either Tech E&O (which blends professional liability with technology/cyber coverage) or a standalone Cyber Liability policy. For technology companies and anyone handling sensitive client data, we recommend the Tech E&O hybrid or adding Cyber as a separate policy.
Start with your contracts. Most corporate clients require $1M per claim / $2M aggregate as a minimum. For consultants working with enterprise clients, $2M/$2M is increasingly standard. Consider your largest client engagement—if a claim could exceed your limit, you're underinsured. We can layer excess E&O policies to reach $5M, $10M, or higher limits for large contracts.
Tail Coverage (Extended Reporting Period) lets you report claims for past work after your policy ends. You need it when you: retire, sell your business, dissolve your company, or cancel your policy without replacement. Without tail coverage, you're immediately exposed for all work you've ever done. Tail typically costs 150-300% of your annual premium for 1-5 years of extended reporting.
Yes—we issue certificates within 60 minutes. We understand you often need proof of insurance immediately to close a contract. Once your E&O policy is bound, we can issue certificates naming your client as "Certificate Holder" or "Additional Insured" (if the policy allows) the same day. Call (224) 616-9430 for urgent certificate requests.
E&O premiums vary based on your profession, revenue, claims history, and coverage limits. Freelancers and small consultants typically pay $500-$1,500/year for $1M limits. Tech companies and agencies with higher revenues may pay $2,000-$10,000+ depending on the risk profile. The key is matching coverage to your actual exposure—we'll analyze your contracts and recommend appropriate limits.
Protect Your Expertise With E&O Coverage
Don't let a "bad advice" claim destroy your business. Get Professional Liability coverage that meets your contract requirements—from consultants to tech firms.
Serving Illinois Professionals from 3945 W Devon Avenue, Chicago