E&O (errors and omissions) insurance (definition)
The agency's own professional liability coverage for claims that it failed to place, advise, or service correctly.
Errors and omissions insurance is the agency’s own professional liability coverage: it responds when a client alleges the agency failed to procure requested coverage, advise on a gap, or service the account, and a loss landed in the space the alleged failure created.
Agency E&O is written on claims-made forms, which makes the policy’s retroactive date and continuity of coverage as important as its limit. Defense costs inside versus outside the limit changes what the limit actually buys.
The exposure is operational before it is legal: documentation discipline, standardized processes, and clear written communication about what was and was not covered are what keep allegations from becoming claims.