If your work involves giving advice, planning strategies, or guiding business decisions, there’s always a risk that a client could suffer a loss and blame you. Even if you did nothing wrong, they can sue. And if they do, the costs can be significant. That’s why errors and omissions insurance (E&O) also called professional liability is essential for anyone who works in a consultative role.
What Is Errors and Omissions Insurance?
E&O insurance covers legal claims tied to mistakes or alleged mistakes made in the course of your professional services.
It protects against:
- Claims of negligence
- Missed deadlines or deliverables
- Oversights in strategy, documentation, or advice
- Poor results that lead to financial loss
It does not cover bodily injury or property damage. That’s what general liability covers.
What Professions Need E&O Coverage?
Common roles include:
- Management consultants
- IT and software advisors
- HR consultants
- Marketing strategists
- Compliance or operations specialists
- Freelance professionals working under contract
In NYC and Westchester especially, E&O is often required under contract before you begin work.
Real-World Claims Examples
An HR consultant in White Plains advises a business on hiring protocols. Months later, the client faces a lawsuit for wrongful termination. They claim the consultant gave flawed advice. Legal fees alone exceed $75,000.
Her E&O policy covers defense costs and potential settlement.
This is not uncommon. In many cases, the lawsuit has little to do with wrongdoing. It’s about liability tied to the outcome.
What Does E&O Insurance Cover?
E&O policies typically include:
- Legal defense costs
- Settlements or court judgments
- Claims of professional negligence
- Accusations of misrepresentation or breach of duty
Coverage is active even if the lawsuit is unfounded, as long as the claim is tied to your services.
What Isn’t Covered by E&O Insurance
E&O policies do not cover:
- Bodily injury or property damage
- Employment disputes (unless you’re an HR consultant)
- Intentional wrongdoing
- Cyber breaches (covered under cyber liability)
If you’re unsure where the line is, Refine Risk helps clarify coverage by role.
Why E&O Is Critical in the Tri-State Area
In Westchester, NYC, and Fairfield County, many consultants serve high-profile clients. When losses happen, clients often look for someone to hold accountable.
Lawsuits in these regions can move quickly and carry high defense costs even for independent professionals.
How Much E&O Coverage Do You Need?
That depends on:
- The size and type of your clients
- The scope of your work
- Any contract requirements
Many professionals start with $1 million per claim. Those working with enterprise clients or in regulated industries often carry $2–5 million.
How Refine Risk Helps
At Refine Risk, we help consultants and independent professionals build E&O coverage that reflects the true complexity of their work.
We help:
- Understand your liability exposure
- Align policies with client contracts
- Manage renewals and reporting requirements
- Integrate E&O with general and cyber liability (if needed)
If you offer advice or strategy, you carry professional risk. Errors and omissions insurance protects you from the cost of being blamed for the outcome.
If you’re a consultant in NYC, Westchester, or Fairfield County, Refine Risk can help you design the protection that fits how you really operate.