208-609-3511 daniel@bittickinsurance.com

Errors and omissions (E&O) insurance covers the legal costs and damages your business faces when a client claims that your professional services, advice, or work product caused them a financial loss. General liability handles bodily injury and property damage well, but it stops there. If a client sues because your design was late, your financial recommendation lost them money, or your software delivered the wrong output, that falls squarely in E&O territory. For professional service firms across the Treasure Valley, from engineering offices in Meridian to consulting firms in Boise, this is often the coverage gap that matters most.

What this coverage includes

Professional negligence claims

E&O insurance pays for your legal defense when a client alleges that a mistake, oversight, or failure to deliver on your professional obligations cost them money. This includes attorney fees, court costs, and any settlement or judgment up to your policy limit. The coverage applies whether the claim turns out to be legitimate or entirely without merit, because defending a baseless lawsuit is expensive either way.

Errors of omission and missed deliverables

The "omission" half of E&O is easy to underestimate. A client can file a claim not because you did something wrong, but because you failed to do something you were expected to do. A missed deadline that cost a client a contract, a recommendation you didn't make that you arguably should have, an inspection checklist item left unchecked: all of these can generate a claim. E&O covers the resulting defense and liability costs.

Intellectual property and defamation exposure

Some E&O policies extend to unintentional copyright infringement or defamation claims, including libel. If your firm creates marketing content, publishes reports, or develops software that inadvertently reproduces protected material, this extension can be meaningful. Coverage specifics vary by carrier and policy form, so Bittick reviews the actual language before placing the policy.

Technology and software liability

Companies that build or supply software, SaaS tools, or technology platforms face a particular wrinkle: if a client uses your tool and suffers a financial loss because it performed incorrectly, they may look to you for recovery. A dedicated technology E&O policy addresses this exposure more directly than a standard professional liability form designed for consultants.

Pairs well with

General Liability Insurance

General liability covers bodily injury and physical property damage claims at your office or on a client site. E&O and general liability together close the gap between physical and financial harm claims.

Learn more ›

Commercial Property Insurance

Protects your office equipment, furnishings, and business records. A claim that involves lost digital files often has a property dimension alongside the professional liability dimension.

Learn more ›

Cyber Liability Insurance

If a data breach or cyberattack exposes client information your firm was handling, cyber liability covers notification costs, regulatory fines, and third-party claims. Many E&O claims now have a cyber thread running through them.

Learn more ›

Business Owner's Policy (BOP)

A BOP bundles general liability and commercial property into one policy, often at a lower combined cost. Many small professional firms in Eagle and Meridian start here, then layer E&O on top.

Learn more ›

Employment Practices Liability Insurance (EPLI)

EPLI covers wrongful termination, discrimination, and harassment claims from employees. It sits in a similar legal-defense cost category as E&O and is worth discussing at the same time.

Learn more ›

What this coverage protects against

Common risks and how this coverage addresses them. Tap any scenario to expand.

  • Engineer's report contains a calculation error that delays a subdivision project.

    The risk

    A civil engineering firm stamps a grading report for a 40-lot development in Star. A calculation error goes unnoticed until the contractor is already mobilized. The developer halts the job, loses the construction season, and files a $300,000 claim against the engineer.

    How this coverage helps

    The firm's E&O policy covers the cost of retaining a defense attorney and, after negotiation, a settlement payment to the developer. Without it, the firm would be paying both from operating cash.

  • Accounting firm misfiles a client's quarterly payroll taxes.

    The risk

    A Boise-based CPA practice handles payroll tax filings for a regional manufacturer. A staff error causes a late filing, triggering IRS penalties and interest the client had not budgeted. The client demands reimbursement and threatens litigation.

    How this coverage helps

    E&O insurance covers the CPA firm's legal defense costs and, if the firm is found liable, the reimbursement owed to the client. The policy also covers situations where the firm is not at fault but still must defend the claim.

  • Marketing consultant publishes content using a licensed image the client didn't clear.

    The risk

    A Meridian marketing agency builds a campaign for a restaurant group and includes a food photograph sourced from a free image site. The photographer holds a registered copyright and sends a cease-and-desist followed by a demand for licensing fees and damages.

    How this coverage helps

    A technology and media E&O policy that includes intellectual property coverage responds to the claim, paying the agency's attorney and negotiating the settlement with the photographer's counsel.

  • SaaS company's software update corrupts a client's inventory database.

    The risk

    A small software firm sells an inventory management tool to several Treasure Valley retailers. A routine update contains a bug that corrupts three months of purchase-order history for one client. The retailer loses a weekend of sales and files a claim for operational losses.

    How this coverage helps

    Technology E&O coverage pays for the retailer's documented financial losses and the software firm's defense costs. Standard general liability would not respond to a financial loss of this kind.

  • Financial planner recommends a product outside the client's stated risk tolerance.

    The risk

    A registered investment adviser places a client in a fund category that does not match the conservative profile documented in the client's intake forms. The fund drops sharply. The client's attorney argues the adviser deviated from the agreed strategy.

    How this coverage helps

    E&O insurance covers the adviser's legal defense through arbitration and any award up to the policy limit. The policy also covers the cost of the adviser's own expert witness, which these disputes routinely require.

  • IT consultant migrates client data to the wrong environment.

    The risk

    A managed service provider in the Boise area is hired to migrate a law firm's file server to a cloud environment. A configuration error routes the data to a shared partition accessible to another client. The law firm cites attorney-client privilege concerns and retains outside counsel.

    How this coverage helps

    The IT firm's E&O policy covers the cost of defending the claim and any settlement reached with the law firm. A cyber liability policy layered alongside it handles any regulatory exposure tied to the data exposure.

  • Staffing agency places a candidate who lacks a required certification.

    The risk

    A staffing firm in Nampa places a candidate for a forklift operator role at a warehouse client. The candidate's certification turns out to have lapsed. After a workplace incident, the client's insurer subrogates against the staffing agency for placing an unqualified worker.

    How this coverage helps

    E&O coverage addresses the staffing firm's liability for the placement error, covering defense costs and the portion of damages attributable to the agency's screening failure.

Frequently asked questions

What's the difference between E&O insurance and general liability for my Idaho business?
General liability covers physical harm: someone gets injured at your office, or your crew damages a client's property. E&O covers financial harm: a client loses money because of something your business did or failed to do professionally. Most professional service firms in Idaho need both, because a single incident can trigger both types of claims.
How much does errors and omissions insurance cost for a small business in Idaho?
Premiums depend on your industry, annual revenue, number of employees, and your claims history. A solo consultant might pay a few hundred dollars a year; a mid-size engineering or financial advisory firm could pay several thousand. Because Bittick places E&O with multiple carriers, we can compare actual quotes rather than giving you a single take-it-or-leave-it number.
Does my Idaho contractor's license require E&O insurance?
Idaho does not universally mandate E&O for contractors, but certain design-build or engineering-adjacent scopes increasingly require it by contract with the project owner or general contractor. If you're bidding commercial work in the Treasure Valley, reviewing your contract language before you bid is worth the time. Bittick can help you understand what your contracts are actually asking for.
Will E&O cover a claim if the client is wrong and I didn't actually make a mistake?
Yes. E&O insurance covers your defense costs even when a claim turns out to be unfounded. In professional liability disputes, getting to "you were right" in court or arbitration can still cost tens of thousands of dollars in attorney fees. The policy is there for that too.
Do Bittick's Texas clients need E&O insurance for the same reasons?
The underlying need is the same: any business providing professional services or advice faces financial harm claims that general liability won't cover. Texas and Idaho treat professional liability similarly in that neither state mandates it universally, but industry-specific licensing boards and client contracts often do. Our San Antonio office works through the same carrier market and can place Texas-domiciled E&O policies directly.
Can I get E&O coverage if my business has had a past claim?
Prior claims make underwriting more complex and typically raise premiums, but they don't automatically disqualify you. Carriers assess the nature of the claim, how it was resolved, and what you've done operationally since then. Bittick presents your story accurately to the right carriers, which gets you a better result than applying blind to a single insurer.

Get an E&O Quote for Your Business

Tell us what your business does and we'll identify the right professional liability form and shop it across our carrier partners.

Don't like forms? Contact us at 208-609-3511 or email us.