Errors and Omissions Insurance for Michigan Professionals

Why Errors & Omissions Insurance aka Professional Liability matters

Mistakes happen—even when you do everything right. If a client claims your advice, services, or failure to deliver caused them a financial loss, E&O (also called Professional Liability) can cover legal defense, settlements/judgments, and related costs—whether the claim has merit or not.

Typical allegations E&O addresses:

• Errors, omissions, or negligent professional advice

• Missed deadlines or cost overruns

• Misrepresentation or breach of professional duty

• Failure to deliver services as promised

Key point: General Liability covers bodily injury/property damage; it does not cover financial losses from professional services. That gap is what E&O is designed to fill.

Who needs E&O?

If you provide advice or services for a fee, E&O is relevant. Common industries:

• Consultants (business, IT, marketing), accountants & bookkeepers

• Real estate agents, property managers, appraisers

• Insurance agents & financial professionals

• Healthcare & allied health (professional liability variants)

• Technology firms: developers, MSPs, SaaS, web designers

• Contractors/design-build (design exposure), architects & engineers

• Media/creative agencies, photographers, videographers

If you sign contracts with larger clients, bid on municipal work, or handle sensitive data, your contract may require carrying E&O with specific limits.

What does E&O cover?

Core protections (policy-dependent):

• Attorney fees & court costs from covered claims

• Settlements & judgments (up to policy limits)

• Disciplinary proceedings coverage (where included)

• Personal/advertising injury related to professional services (select forms)

• Subpoena assistance and privacy breach liability (where available)

Common options & endorsements:

• Prior acts/retroactive dates (crucial for continuity)

• Contractual liability carve-backs

• Cyber & data breach (often a separate policy; can be packaged)

• Media liability for creatives and marketers

• Defense outside vs. inside the limits

Claims-made basics: Most E&O policies are claims-made, meaning the claim must be made (and usually reported) during the policy period, and the alleged act must occur on/after the retroactive date. Keeping that retro date intact matters.

How much does E&O cost?

Pricing varies by industry, revenue, contracts, loss history, and limits. As a quick reference, small consultancies often see:

• $500–$1,500/year for $1M per claim / $1M aggregate (low hazard, clean history)

• Higher-hazard professions (A&E, medical, financial) are priced differently and underwritten more deeply

We’ll shop multiple carriers to find the right balance of cost, limits, and wording for your risk.

Our process (fast & simple)

1. Quick intake: 5–10 minutes on business operations, contracts, revenues, and prior coverage

2. Market search: We leverage multiple carriers & specialty underwriters

3. Proposal: Side-by-side options, limits, deductibles, retro dates, and exclusions explained

4. Bind & issue: Certificates and proof of insurance delivered quickly

5. Annual review: Keep your retro date and adjust limits as you grow

What we’ll ask you

• Business activities & services offered

• Annual/anticipated revenue and client mix

• Written contracts or engagement letters (yes/no)

• Prior E&O coverage and retroactive date

• Any past claims or incidents

Ready for a quote?

Call: 586-221-6870 to get started

FAQs

Is E&O the same as Professional Liability?

Yes. “Professional Liability,” “Errors & Omissions,” and sometimes “Malpractice” refer to similar coverage concepts for professional services (terminology varies by industry).

Is E&O claims-made or occurrence?

Almost always claims-made. That’s why your retroactive date (the oldest date your work is covered) is critical. Don’t lose it when switching carriers.

Does General Liability include professional services?

No. GL excludes professional services. You typically need separate E&O.

Do I need E&O if I have a contract with liability limits?

Contracts shift risk, but they don’t stop lawsuits. Clients and third parties can still allege negligence. Many contracts require minimum E&O limits regardless.

Errors and omissions insurance—also called professional liability insurance—can respond to claims alleging negligence, mistakes, missed deadlines, inaccurate advice, failure to deliver promised services, or other professional errors. General liability insurance typically does not cover these financial-loss allegations.

The policy wording matters because professional services differ widely. Consultants, technology firms, real estate professionals, insurance agents, designers, bookkeepers, marketing companies, and many other service businesses face different claim scenarios.

Our team reviews your services, contracts, annual revenue, client types, prior work, subcontractors, and requested limits before comparing errors and omissions insurance. We also help examine retroactive dates, defense provisions, deductibles, exclusions, and whether cyber or media liability should be coordinated with the policy.

Learn more from the Customers First team or review additional guidance from the Michigan Department of Insurance and Financial Services.

• The professional services definition and covered activities
• Retroactive dates and continuous claims-made coverage
• Defense costs inside or outside the policy limit
• Contract requirements, deductibles, exclusions, and subcontractor exposure