If your business offers professional services or advice, you’re likely covered by errors and omissions insurance (E&O). It’s one of the most critical forms of liability coverage for consultants, agencies, advisors, and service-based businesses. But when something goes wrong and you need to file a claim, the process can feel confusing or overwhelming.

At Marathon Insurance, we know that time is crucial when you’re facing a potential lawsuit or client dispute. A delayed or mismanaged claim can cost your business time, money, and reputation. That’s why we’ve broken it down into a clear step-by-step guide.

Related Article: What Is Errors and Omissions Insurance 

Here’s how to file an errors and omissions claim properly so you’re protected when it counts.

What Is an Errors and Omissions Claim?

An E&O claim is a formal request for coverage under your insurance policy after a client or third party accuses you of negligence, professional mistakes, or failure to deliver services as agreed.

This can include:

• Missed deadlines that lead to client losses
• Advice that results in financial damage
• Errors in documentation or reporting
• Failure to meet agreed-upon terms
• Oversight that leads to legal exposure for your client
  
  

Even if the claim is false or exaggerated, your insurance can help cover legal defence costs, settlements, and damages. That’s why prompt and proper filing matters.

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Step 1: Recognize the Trigger

Many professionals delay notifying their insurer until legal papers are served. That’s a mistake. The clock starts ticking much earlier.

You should consider filing a claim (or notifying your insurer) if:

• A client threatens legal action or demands compensation
• You discover a mistake in work already delivered
• You receive a letter alleging negligence
• There’s a contract dispute involving your services
• You believe your actions may result in future claims
  
  

Your policy may require “immediate notice” or notification as soon as you become aware of a potential issue. If you wait, the insurer could deny the claim based on late reporting.

Step 2: Review Your Policy Details

Before making a formal claim, take a moment to review your E&O policy. Check for:

• Coverage limits and deductibles
  
• What’s included and excluded
  
• The claims process and contact info for reporting
  
• Deadlines for filing (some policies specify a window of time after becoming aware of an incident)
  
  

If you’re insured with Marathon Insurance, you can access your policy details quickly through our online portal or mobile app or speak to one of our licensed brokers for a walk-through.

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Step 3: Contact Your Broker or Insurer

Next, notify your insurance provider. You’ll usually do this through:

• Your insurance broker (like Marathon Insurance)
• A dedicated claims contact number or email
• An online claims form provided by the insurer
  
  

It’s best to notify in writing, even if you call first. That way, there’s a clear paper trail of when and how you reported the issue. You don’t need all the details to make the first notification; you just need to alert them to a potential problem.

Step 4: Gather Supporting Documentation

Once your claim is opened, you’ll need to provide supporting documents and facts. The more organized you are, the faster the process moves.

Prepare the following:

• A written account of what happened (dates, people involved, what went wrong)
• Copies of the contract or agreement with the client
• Email threads or messages related to the issue
• Invoices or records of services provided
• Any formal complaint, legal notice, or demand letter
• Notes on phone calls or verbal conversations
  
  

Avoid guessing or speculating in your written statement. Stick to facts and timelines. If the client claims something that isn’t accurate, note it, but let your insurer address it through the legal process.

Step 5: Cooperate With the Investigation

After receiving your documentation, the insurer may assign a claims adjuster or legal team to investigate. Their job is to:

• Confirm the nature of the claim
• Evaluate whether it falls under your coverage
• Assess the potential cost of settlement or defence
• Recommend next steps, including legal representation
  
  

You may be asked for follow-up documents, witness names, or clarification. Respond promptly and honestly. Remember: the insurer is on your side, but they need your cooperation to protect you.

In some cases, they’ll appoint a lawyer to represent you. Once that happens, avoid communicating with the claimant directly unless advised by legal counsel.

Step 6: Follow Through Without Delay

E&O claims can take time to resolve. That said, delays on your part can slow things down or put coverage at risk.

Stay in touch with:

• Your claims adjuster
• Your insurance broker (if applicable)
• Your legal team, if one has been assigned
  
  

Keep a personal file with copies of everything you submit or receive. If you’re unsure about what’s happening, don’t hesitate to follow up or ask for clarification.

At Marathon Insurance, we stay involved with our clients throughout the process, not just when the policy is written. We advocate on your behalf to make sure you’re treated fairly and that your business stays protected.

What Not to Do During an E&O Claim

Mistakes made during the claims process can jeopardize your coverage. Avoid these common errors:

• Don’t admit fault or accept blame before consulting with your insurer
• Don’t delay reporting, even if you think the issue might go away
• Don’t try to settle privately with the client unless the insurer approves it
• Don’t alter records or withhold information. They will find out, and it could void your coverage
• Don’t ignore legal papers. Contact your insurer immediately if you receive any
  
  

E&O insurance exists to protect you, but only if you follow the process. Trying to “fix” the situation on your own often makes it worse.

After the Claim: What to Expect

Once your claim is resolved, whether through dismissal, settlement, or trial, your insurer will close the file. You’ll receive a record of what happened and how the funds were applied (if any).

The claim may affect your future premiums or policy terms, especially if there’s a large payout involved. But not always. Insurers look at claim frequency, size, and outcome before adjusting their rates.

To avoid future claims, consider reviewing:

• How contracts are worded
• How work is documented
• What quality controls do you have in place
• How feedback and client concerns are handled
  
  

At Marathon, we help our commercial clients review risk exposure and adjust coverage or internal processes to reduce the chance of repeat issues.

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Why File Through Marathon Insurance?

Filing an E&O claim can feel like a high-stakes process, especially when your reputation is on the line. That’s why having the right brokerage behind you makes all the difference.

At Marathon Insurance, we:

• Help you understand your policy before a claim happens
• Guide you through every step of the claims process
• Advocate on your behalf with insurers and legal teams
• Provide ongoing support after the claim is resolved
• Offer tailored commercial policies that fit your industry and risk level
  
  

We’re not just here to sell policies; we’re here to protect your business when it matters most.

Protect Your Business with the Right Support

If you think you may need to file an errors and omissions claim, don’t wait. Timely reporting, clear communication, and professional guidance make all the difference.

At Marathon Insurance, we help business owners and professionals file E&O claims with confidence. Contact our team to review your current policy, update your coverage, or get support with an ongoing claim. Because when your work is on the line, experience matters.