Errors and Omissions Insurance: Why Solo Pros Need It

Could a client really sue me over my work?
What does E&O insurance actually cover?
Do I need it if nothing has gone wrong yet?
What if the mistake came from AI?
You're building something real. Protect it.
Sources
FAQs

In June 2025, a New York couple sued their wedding photographer over a $3,200 package, claiming blurry photos and missed moments. His lawyer denies every allegation. He still has to pay to fight it. Errors and omissions insurance (E&O) exists for exactly that: it pays your legal defense and any judgment when a client claims your work fell short.

Could a client really sue me over my work?

He's a working professional who booked a wedding, delivered the photos, and got sued over them. The suit alleges the images were "blurry, poorly composed" and missing key moments, and that he seemed rushed on the day. Maybe he wins. Winning still costs money.

Two comforts keep most solo owners uninsured. "I've never heard of a designer being sued over their work." And "my contract protects me." The problem with both: an allegation alone is enough to start the legal bills, true or not. When small businesses get pulled into lawsuits, the legal costs run from $3,000 to $150,000, and owners have to pull that money back out of the business. About a third of those cases stayed under $10,000. The rest didn't. A contract gives your lawyer something to argue. You're still paying the lawyer. By the hour.

And there are more of us to sue than ever. Solo businesses with no employees grew from 24 million in 2015 to 30 million in 2023, up 25 percent. Clients have noticed. More of them now ask for proof of coverage before they sign.

None of this means clients are out to get you. It means the downside of one bad project is no longer capped at a refund.

What does E&O insurance actually cover?

First, the name. Errors and omissions insurance and professional liability insurance are the same policy — two names for one thing. When a client's contract asks for professional liability, this is it.

E&O covers claims about your professional work: the mistake, the missed deliverable, the advice that turned out to be wrong. A copywriter ships an ad the client has to retract. A designer misses a launch date. A consultant's numbers steer a client wrong. Those are E&O claims. If the client says your error cost them money, the policy pays your legal defense and any judgment, up to the policy limit.

One rule worth knowing: most E&O policies are claims-made. The policy has to be active both when the work happened and when the suit gets filed. Let it lapse and a claim about last year's project is yours to pay. Keep this coverage active for as long as the work could still come back to you.

Two things it won't do. It won't cover intentional or dishonest acts — insurance protects mistakes, not fraud. And it won't cover physical accidents. That's general liability (GL): a client trips over your light stand, your coffee ruins their laptop. GL covers the accident. E&O covers the work. For advice, design, code, or words, E&O is the policy that responds to a client dispute.

Do I need it if nothing has gone wrong yet?

When we formed Olli, we worked with a consultant. As the conversations got deeper about what we'd need from him, he stopped and asked us: do I need insurance? He'd never thought about it, and he had paying clients. We told him what we'd tell anyone — one small mistake or a missed deliverable could cost him months of payments. A few weeks later he called. He'd bought E&O. He has kids. It made him think.

He wasn't careless. He was busy doing the work. The question just hadn't come up until someone put a number next to it.

What if the mistake came from AI?

AI-assisted work is still your work. In 2023, a federal judge fined two lawyers and their firm $5,000 for filing a brief built on case law ChatGPT had invented. The court didn't fine the chatbot. If an AI tool writes a bad clause into your contract, fabricates a statistic in your report, or drops a decimal in your spreadsheet, the client's claim comes to you.

That's not a reason to drop the tools. It's a reason to check their output like it's your own — because legally, it is — and to carry coverage for the day something slips through. We're all human. We all make mistakes. Even LLMs these days, if we're not careful.

You're building something real. Protect it.

Olli offers professional liability (E&O) for businesses of one, and we can tell you what your work actually needs. When a client asks for proof, you get a certificate of insurance (COI) to hand over. Get your quote at Olli.

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by state, class of business or the individual.

Sources

FAQs

Do freelancers need errors and omissions insurance?

If clients pay you for work or advice, it's worth pricing. Defending a single claim costs small businesses $3,000 to $150,000 win or lose, and more clients now require proof of coverage before they'll sign a contract. The smaller your business, the harder that bill hits.

Do I need both E&O and General Liability?

They cover different things. General liability covers physical accidents — someone gets hurt or property gets damaged. E&O covers claims about the work itself: mistakes, missed deliverables, bad advice. If your business is purely professional services, E&O is the policy that responds to a client dispute; many owners carry both.

What do I do if a client requires insurance and I don't have it?

Ask the client what coverage and limits their contract requires, then buy a policy before you sign. E&O for a business of one can usually be bound quickly, and the client will ask for a certificate of insurance (COI) as proof. Buying to the contract's requirements means you only buy once.

Why does my client want me to add them as an additional insured?

They want their name on your policy so your coverage protects them too if your work triggers a claim against them. It's routine, and most insurers can add it and show it on your certificate of insurance.

A Couple Sued Their Wedding Photographer Over $3,200. That's What Errors and Omissions Insurance (E&O) Is For.

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