What is E&O insurance?
Errors and Omissions (E&O) Insurance, also known as Professional Liability Insurance, protects companies and professionals against claims arising from inadequate work, professional mistakes, missed deadlines, or failure to deliver promised services. Unlike D&O which covers management decisions, E&O covers the professional services the company sells: software defects, consulting advice, design errors, financial advisory, legal/medical/accounting malpractice. E&O is essential for technology, professional services, and SaaS companies — clients sue for damages when products fail or services fall short.
E&O coverage typical scope
- Negligent acts: mistakes in professional judgment.
- Errors and omissions: failure to perform contracted services.
- Misrepresentation: incorrect statements made in professional capacity.
- Defense costs: legal fees, even for groundless claims; typically within policy limits.
- Settlements and judgments: court awards or negotiated settlements.
Industry-specific E&O variants
- Tech E&O: software defects, downtime, data loss, IP infringement — often bundled with cyber liability.
- Architects & Engineers E&O: design errors, building defects, code violations.
- Legal Malpractice: attorney professional liability.
- Medical Malpractice: physician/clinic E&O.
- Financial Advisory: investment advice, brokerage errors.
Common E&O exclusions
- Intentional acts and fraud: excluded; covered under criminal/civil actions.
- Bodily injury / property damage: covered by general liability.
- Employment-related claims: covered by EPL (Employment Practices Liability).
- Patent infringement: often excluded; needs separate IP coverage.
- Prior known matters: retroactive date applies.
Türk SaaS ve danışmanlık şirketleri için E&O
Türk SaaS’leri (Insider, Loops AI, Foriba), yazılım danışmanlık firmaları ve professional services (denetim, hukuk, mühendislik) E&O kapsamını uluslararası müşteri sözleşmeleri için (özellikle MSA’larda standart talep) güvenceye alır. Türk sigorta sağlayıcıları (Anadolu Sigorta, Allianz Türkiye, Mapfre, Aksigorta) Tech E&O ve cyber-bundled poliçeler sunar. Türk B2B SaaS’lerin Enterprise müşterilere satışta tipik gereksinim 1-5M USD E&O limit; Cyber Liability ile birleştirilmiş “Tech E&O + Cyber” paketleri yaygın. KVKK ihlalleri için cyber liability + E&O kombosu data breach hukuki sorumluluk + uyum cezaları kapsamını sağlar.
Do: match E&O limit to largest client contract liability cap; review retroactive date carefully (prior services must be covered); bundle with cyber liability for tech companies.
Don’t: assume general liability covers professional mistakes — GL excludes professional services errors entirely; need dedicated E&O policy.