Any business that provides services to the public runs the risk of being sued by dissatisfied customers. Both E&O and D&O insurance protect from this risk. While they may sound similar, the following comparison of E&O vs. D&O insurance explains the key differences between the two.


Also known as professional liability, an errors and omissions policy protects from claims that your company omitted something from a promised service or made an error in providing it. It protects individual employees from financial responsibility and from the cost of legal representation in court. The types of claims covered include the following:

  • Advice that results in a client losing money¬†
  • Design or building errors
  • Breach of contract
  • Malpractice


D&O stands for directors and officers insurance. This policy is also a type of liability insurance, but one that pertains only to decisions made by staff in managerial positions. Examples of claims covered under D&O include the following:

Insurance policies can be complicated, and those in the know use a number of acronyms when discussing them. Be sure you understand what they mean so that you can make an informed decision about the liability insurance that is best for you.