IP Insurance vs. E&O: What Is the Difference?

E&O, also called professional liability, can address claims arising from professional services or a failure to provide them, according to the Texas Department of Insurance. IP insurance may instead be structured around particular rights, products, and defense or enforcement options. A software delivery error, copyright allegation, and patent enforcement action can implicate different policy sections, so the labels do not determine which insurer responds.

Read the E&O definition of professional services, covered wrongful acts, intellectual-property exclusion, and any exception. Compare these with the IP form's schedule, claim trigger, and defense or enforcement grant. Confirm reporting deadlines, retroactive dates, limits, retention, defense-cost erosion, and consent terms. Ask how contractual indemnity and counterclaims are treated. If both policies could apply, have the broker explain their other-insurance provisions and whether a specific endorsement is needed. Do not assume E&O automatically covers every IP claim or that a separate IP quote replaces professional liability.