Errors and omissions excludes more than most firms expect: bodily injury, dishonesty, fee disputes, guaranteed results, work before your retroactive date, and anything you already knew about. The definition of professional services is where most gaps actually live. Who this is for: Architecture firms reading a policy or comparing quotes.
Same coverage, two names. Some carriers and contracts say errors and omissions and others say professional liability. They are the same policy. This page is written around errors and omissions. Here is the same guide written around professional liability.
The short version
- The policy answers third party claims, not the cost of redoing your own work.
- Prior knowledge is the exclusion that turns a late report into a denial.
- Guarantees and promised results are outside almost every Errors and Omissions (E&O) form.
- Suing a client for fees invites a counterclaim your policy may not fully cover.
- The definition of professional services is the most important sentence in the policy.
The exclusions that matter most for architecture firms
- Cost overruns and estimates you did not have to guarantee.
- Means and methods of construction, which belong to the contractor.
- Express warranties or guarantees of a result written into your agreement.
- Bodily injury and property damage, which belong on general liability.
- Anything you knew about before the policy started, including a dispute you had not yet reported.
- Work performed before your retroactive date.
The five that surprise people
| Exclusion | What it means in practice |
|---|---|
| Prior knowledge | If you knew of a circumstance likely to become a claim before inception, it is excluded even if the claim itself arrives later |
| Fee disputes | Suing a client for unpaid fees usually triggers a counterclaim, and your policy will not fund the collection action |
| Guarantees and warranties | A promised result, savings figure, or performance metric is outside almost every errors and Omissions form |
| Insured versus insured | Claims between partners or between you and a related entity are typically excluded |
| Intentional or dishonest acts | Fraud is excluded, though most policies defend you until dishonesty is established and protect innocent partners |
The rework problem
Errors and omissions responds to a third party claim, not to your own costs. If you discover a mistake and fix it before anyone demands anything, you are usually funding that yourself. Some carriers offer mitigation or loss prevention coverage that pays part of the cost of fixing a problem to avoid a larger claim. It is worth asking about, because for architecture firms the cheapest resolution is almost always the early one.
How Do I Get shrink the gaps?
- Report circumstances early, so prior knowledge never becomes an argument.
- Ask your broker to compare the definition of professional services across quotes. A narrow definition is the most common hidden exclusion of all.
- Add cyber and privacy coverage rather than relying on a small sublimit inside errors and Omissions.
- Avoid guarantees in engagement letters and proposals. Aspirational language in a sales deck has ended up in coverage disputes.
- Think hard before suing a client for fees. Weigh the recovery against the counterclaim it invites.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A architecture firm that spotted a problem, quietly fixed it, and reported nothing until the client demanded money a year later.
The claim: The matter started with an accessibility non-compliance found at final inspection. The owner sought $220,000 to modify restrooms and entrances in an occupied building.
The cost: $46,000 in defense costs and $205,000 in settlement, $251,000 in total, paid inside the policy limit after the retention.
The lesson: The carrier questioned coverage under the prior knowledge exclusion. Reporting the circumstance when it was first noticed would have locked in coverage under the policy then in force.
Frequently asked questions
Q: What does errors and omissions insurance not cover?
Bodily injury and property damage, intentional or dishonest acts, fee disputes, guarantees of a result, work before your retroactive date, and anything you already knew about when the policy started.
Q: Will my policy pay to redo work I got wrong?
Usually not. Errors and omissions responds to a third party claim, not to your own cost of correcting an error. Ask whether the carrier offers mitigation coverage, which can pay part of that cost.
Q: Am I covered if a client sues after I sue them for fees?
The counterclaim may be covered, but the collection action is not, and some carriers restrict coverage for counterclaims arising from a fee suit. Talk to your broker before filing.
Q: What is the prior knowledge exclusion?
It removes coverage for matters you knew about, or reasonably should have known about, before the policy began. It is why reporting a circumstance to your current carrier before renewal matters so much.
Q: Does my policy cover a claim if a partner acted dishonestly?
Dishonest acts are excluded, but most policies defend until dishonesty is established and include an innocent partner or severability clause that preserves coverage for those not involved.
Q: What is the most common gap for architecture firms?
A narrow definition of professional services that does not include everything the firm actually does. Read that definition against your own service list before you buy.
How Morrow helps architecture firms
Morrow is a licensed independent commercial insurance brokerage that specializes in architecture firms. Reading the exclusions and the definition of professional services is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for architecture firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for architecture firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.