As a small business owner in Tennessee, you work hard to serve your clients well. But what happens if one mistake or misunderstanding threatens everything you’ve built? That’s where Errors & Omissions insurance—often called E&O insurance—comes in.
This type of coverage is designed to protect service-based businesses when a client claims you made a mistake, gave bad advice, or failed to deliver on what you promised. It’s one of those policies you hope to never use, but you’ll be glad you have if something goes wrong.
Think of E&O as “mistake insurance.” It helps cover the cost of legal defense, settlements, or judgments if a client accuses you of professional negligence. Unlike general liability (which covers things like property damage or bodily injury), E&O covers financial losses caused by your services.
For example:
A marketing agency sends a mailer with the wrong pricing and the client loses money.
A consultant gives advice that doesn’t pan out and the client blames them.
An IT provider forgets a step during setup and the client’s operations go down.
In each of these, E&O would step in to help cover legal costs and damages.
If you provide a professional service or advice, you need it—plain and simple. Some Tennessee-specific examples include:
Real estate agents & brokers – Tennessee law actually requires E&O for licensed agents.
IT consultants – With Nashville’s growing tech scene, the risk of data mishaps is real.
Business & marketing consultants – If your advice leads to a financial loss, you could be held liable.
Graphic designers, photographers, event planners – Any service-based business with client expectations can face lawsuits over project results or missed deadlines.
Accountants or bookkeepers – A small math error could mean big consequences for your client.
In Tennessee, small businesses make up the bulk of our economy. We’re an entrepreneurial state—over 620,000 small businesses operate here. But no matter how small or tight-knit your community is, you’re not immune to lawsuits.
The reality is:
Over half of all civil lawsuits are against small businesses.
Even a groundless lawsuit can cost $10,000–$100,000 to defend.
A single claim could shut your doors for good if you don’t have the right coverage.
Add in the fact that many Tennessee industries—like real estate, tech, and healthcare—come with complex client needs and expectations, and it’s easy to see why E&O is essential protection.
E&O policies can be confusing, especially when you start looking at coverage limits, exclusions, and industry-specific language. This is where having a solid, local insurance agent comes in.
At Hutsenpiller Insurance, we help small businesses across Tennessee find coverage that fits their needs—not a generic policy off the shelf. Because we’re independent, we can compare multiple carriers and make sure you're getting both value and protection.
And if something ever goes wrong, we’re here to walk you through it. From helping you file a claim to adjusting coverage as your business grows, we’ve got your back.
Mistakes happen. What matters is how well you’re protected when they do. E&O insurance for small business owners in Tennessee is a smart, affordable way to protect your reputation, your finances, and everything you’ve worked hard to build.
If you want to learn more or just want to double-check your coverage, reach out to our team at Hutsenpiller Insurance. We’ll help you make sure your business is covered—so you can keep doing what you do best.