D&O vs E&O: What’s the Difference?
D&O covers management-related claims; E&O covers claims about professional services or advice.
A company selling expert services may need both: D&O for leadership decisions and E&O for client allegations that its work caused a loss.
The distinction turns on the capacity in which the insured acted. A customer alleging that a company’s service failed may look to E&O; an investor alleging that directors mismanaged the company may look to D&O. A single complaint can contain both kinds of allegations, so allocation and exclusions matter. D&O’s A/B/C grants govern individuals, indemnification, and sometimes entity claims; E&O wording may insure professional services by the company or its staff. Compare insured entities, definitions, defense-cost treatment, retroactive dates, and any contractual or IP exclusions in both forms. Neither coverage label guarantees payment for mixed claims.
