Question 1

What does freelancer E&O insurance cover?

Accepted Answer

E&O covers financial losses your clients suffer due to your professional mistakes — missed deadlines, technical errors, work not meeting specs, negligent advice, and breach of contract. It pays your legal defense costs even if the claim is groundless.

Question 2

Do I need E&O insurance if I'm just starting out?

Accepted Answer

Yes — especially if you're taking client contracts. New freelancers often face disputes more frequently as they establish their processes. The cost of a lawsuit ($50,000–$200,000 in legal fees alone) far exceeds years of E&O premiums.

Question 3

What is the difference between per-occurrence and aggregate coverage?

Accepted Answer

Per-occurrence is the limit for a single claim. Aggregate is the total your insurer pays across all claims in a policy year. A $500K per-occurrence / $1M aggregate policy means one claim can't exceed $500K, but total yearly claims can reach $1M.

Question 4

Does E&O cover me for past work (prior acts)?

Accepted Answer

E&O policies are typically 'claims-made' — they cover claims made during the policy period for work done after your retroactive date. If you let your policy lapse, you lose coverage for past work. Maintain continuous coverage or buy 'tail' coverage when stopping.

Question 5

Do enterprise clients require E&O from freelancers?

Accepted Answer

Increasingly yes. Enterprise and agency clients often require $1M–$2M E&O policies and may need to be listed as additional insureds. Some platforms (Upwork Enterprise, Toptal) have blanket coverage requirements for their contractors.

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