By: Mike Downey


Businesses like travel agencies, accountants, consultants, interior decorators and the many others that are routinely providing contracted services for their customers often find themselves wondering, “Does my insurance protect me from any mistakes I may make while performing my contracted work?”


This is a great question and it all depends on what coverages and policies you have in place. General Liability will not cover you in this situation. What you need is a Professional Liability policy commonly known as E&O insurance (Errors & Omissions).


An E&O claim for a Travel Agent could look something like this: while booking a flight for a client the agent accidentally books a coach flight instead of the first-class flight that was requested on the contract, the mistake isn’t noticed until they get a frantic call from their client at the airport that they don’t have first class tickets! The agent would have to pay additional fees for booking day-of and would be on the hook for whatever additional costs that were incurred, severely cutting into their bottom line.


To truly protect yourself and your business you need to make sure that you have Professional Liability Coverage also known as E&O Insurance. This coverage protects you in exactly these types of situations. Any time you or your employees make an honest mistake in the execution of a contract this coverage kicks in and covers the damages.


If you have any questions about professional liability you can email me at mdowney@thebulowgroup.com


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