Protect Your Business With E&O; insurance in Texas

If a company offers unique products and professional services, E&O insurance Texas is a vital need. You cannot avoid accidents and mistakes at all times. The last thing you would want to be held accountable for is when a client is not satisfied with your product or service, resulting in pricey legal charges. Obtaining an error and omissions policy coverage will help you to be financially safe in times of uncertain events. It could help you prevent embarrassment in case your business faces costly claims.

What is Errors & Omissions Insurance?

Error and omission insurance is also known as E&O insurance and professional liability insurance. It protects professionals from lawsuits due to mistakes in providing professional services. This insurance covers your court fees or arrangements, which can be expensive for a firm to pay on its own.

Texas errors and omissions policy (professional liability insurance) protects businesses and individuals from damages and legal defense expenses caused by negligence act, error, or omission in performing their professional duties. Regardless of the result, whether you are found guilty or innocent, even if the claim was dismissed, error & omission insurance policy protects you from all legal fees. EO coverage is not included in general commercial liability insurance or any professional liability insurance policies. However, it is an inexpensive addition to commercial insurance policies.

Some insurance agents or companies offer appraisers error and omissions insurance policies to realtors, home inspectors, brokers, and other real estate professionals. E&O policy insurance covers real estate related claims, even those brought on by lenders.

Doctors should have medical malpractice insurance and must not start seeing patients without it. The same goes for businesses without errors & omission insurance. You can work with a commercial insurance professional to identify omission and error insurance packages that best suit your needs.

Some clients require proof of errors & insurance coverage before getting your service. E&O is not needed in Texas, but having this professional liability coverage offers crucial protection, and some states require real estate agents to have it. This coverage or professional liability insurance can help real estate professionals with their legal expenses if a lawsuit is filed against them due to performance mistakes.

What do Texas errors and omissions insurance cover?

E&O insurance protects your business from claims of: 

  • Negligence
  • Errors
  • Omissions
  • Misrepresentation
  • Breach of good faith and fair dealing
  • Fallacious advice
  • Personal injuries, like libel and slander

Defense attorney charges, legal costs, and liability suits can be costly. E&O policy coverage can help shield your expenses, paying for your court staff and other administrative costs. Settlements and judgments can cost from a thousand to millions of dollars. If you are not covered, you are at risk of paying these types of expenses out of your pocket. But if you have it, you can relax knowing that this professional liability policy will cover most of the costs.

What Do Errors and Omissions Insurance Not Cover?

Texas Errors and omissions policy does not cover intentional acts or purposely deceive your customers or clients. 

General liability claims. E O coverage does not include bodily injury or property damage claims to third parties. Instead, you will need a general liability insurance policy to help you with this type of claim.

Employee claims. Claims of job related injuries and illnesses and other lawsuits that relate to employment are not covered by E&O insurance. Workers’ compensation insurance will cover these.

Claims that happen before your policy is activated. EO policy only covers claims resulted from incidents that occur on or after your policy becomes active. You need to add a retroactive date to your coverage if you want to be covered by such claims.

Who Needs E&O Insurance?

Here are some businesses that need e&o insurance:

  •  Attorneys and law firms
  • Accountants and financial institutions
  • Engineers and engineering firms
  • Advertising firms
  • Teachers and educators in private practice
  • Educational businesses
  • Marketing firms
  • Website developers
  • Consulting companies
  • Cultural organizations, like museums and galleries
  • Medical offices and healthcare facilities
  • Barbershops and hair salons
  • Printing and publishing companies
  • Veterinary offices and pet groomers

Why Do You Need Errors & Omissions Insurance?

Texas Error and Omission insurance is essential if you don’t want to pay for the expenses out of your pocket, which can put your business at risk. Even though your customers drop their claim, your legal fees will still cost a lot. More to that is when you are at fault and agreed to settle the claim out of court, and settlement can cost you a considerable amount. Hence, it is vital to get your business protected with E O coverage.

Texas Errors and Omissions Insurance Cost

The cost of error and omission insurance varies for each company. Regardless of the price or the value of your business’ mistakes, it is worth paying an insurance premium. Different factors can influence your error and omission cost.

  • Business risk. If your business is considered at a higher risk, you will likely pay a more expensive rate. For instance, the owner of a financial consulting company that advises on millions of dollars investment has a more expensive premium than a smaller financial advisor.
  • Coverage limits. Those who have a record of liability claims made against their business are expected to have a higher error and omission coverage premium.
  • Location. Rates can vary due to your business location. You will likely have higher premiums if your business is in a busy city.


To help you prevent such claims or to cost down your EO insurance (professional liability insurance) are to train your employees, check for the contracting system of your business to keep quality controlled, and communicate with your customer as regularly as possible to make sure they are satisfied.

Texas Errors and omission insurance costs are different for all small businesses. It will depend on your needs and risks. You can get an e&o insurance quote online or get in touch with insurance agents to help you get the right coverage to propel your business forward.