1. What is Errors & Omissions Insurance?

    • Errors and Omissions Liability protects your company, or you individually, from claims if your client holds you responsible for acts, errors or omissions related to travel arranged by you for your clients – this includes a service you provided, or failed to provide, that did not have the expected or promised results.
    • Coverage includes legal defense costs - no matter how baseless the allegations.
    • Errors and Omissions insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.
    • Coverage extends to both W2 employees and can include 1099 subcontractors.

  2. When is Errors & Omissions needed?

    • If you are in the business of providing a service to your client for a fee, you have an E&O exposure. You may want to consider what will happen if the service is not done correctly or on time, and it costs your client money or harms their reputation.
    • This coverage should be at the foundation of every professional service company’s insurance portfolio.
    • Usually it is wise to purchase the coverage even prior to launching your business, or certainly when you have customers.
    • It can be a contract requirement from companies that you perform services for.

  3. I have Commercial General Liability coverage; Why do I need Errors & Omissions?

    • This is a common misconception. Professional Liability coverage is not provided by a Commercial General Liability policy. Commercial General Liability does NOT provide coverage for any travel-related Professional Liability issues, any service-related errors, contract performance disputes or any other Professional Liability issues.
    • Typically, a general liability policy does not cover consequential financial loss, and most exclude claims arising out of professional services. To properly cover your exposures, you need comprehensive Errors and Omissions coverage in addition to your existing General Liability Policy.
    • Travel Agents who have General Liability without Professional Liability (Errors or Omissions) coverage are taking a serious risk. It’s like a doctor practicing medicine without Malpractice insurance.
    • Mistakes Happen. Every company messes up at some point. Even the simplest glitch in a client’s travel, especially if it is business-related travel, can create financial consequences for your client. The client becomes enraged, calls his attorney, and looks to you for reimbursement. Even with work that seems less risky, there’s no outsmarting the consequences of a lawsuit.
    • Practically any firm or individual that improperly performs services can cause a client to suffer economic loss.
    • You Can’t Be Everywhere. You can’t personally handle every job. Errors and Omissions coverage insures not only your mistakes, but also the mistakes of the employees and Independent Contractors you hire.
    • Most Importantly: Errors and Omissions insurance might save you from extreme embarrassment, a lost client, or worst of all, a bad reputation.
    • Even if you’re not at fault, litigation is time-consuming, costly and potentially disastrous to your firms reputation. E & O insurance is a cost effective way to protect your business.
    • Most E & O policies cover judgments, settlements and defense costs. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. They can bankrupt a smaller company or individual and have a lasting effect on the bottom line of larger companies.

  4. What can I do to help avoid a claim?

    • Always have a written contract that spells out what will be done, what will not be done and what the fees will be.
    • Communicate throughout the job and keep the expectations realistic.
    • Have quality control procedures in place and use internal and external audits to check them.

  5. What do I do if I do have a claim?

    • Timely reporting of claims is a key policy condition, so at the first notice of a claim, or if you become aware of circumstances which are likely to lead to a claim, please contact:


      Joyce Booty, Executive Assistant, Claims Department, United States Liability Insurance Group, either at:

      Email: jbooty@usli.com

      Fax: 610-687-9398



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