Back to Glossary
Insurance & Bondingaka: E&Oaka: professional liability

Errors and Omissions (E&O)

In Plain English

Insurance that covers professionals if they make a mistake in their design or advice that causes financial loss.

Definition

Errors and omissions insurance, also called professional liability insurance, protects design professionals and contractors against claims of negligence, mistakes, or failures to perform professional duties. In construction, E&O is carried by architects, engineers, and design-build contractors to cover claims arising from faulty designs or specifications. Unlike CGL, E&O covers financial harm resulting from professional errors rather than physical property damage.

Example

An engineer's E&O policy responds when a structural miscalculation in the design drawings requires expensive remediation after the building is framed.

Related Terms

Frequently Asked Questions

Need more than definitions?

Get AI-powered bid alerts, automated form filling, and proposal drafting.

Start Free Trial

© 2026 ConstructionBids.ai — A LaderaLabs Product