Illinois E & O Lawsuits

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An E&O lawsuit (E&O is short for “Errors and Omissions”) is a legal claim brought against a professional who made a mistake or failed to do something they should have done, and that error or omission resulted in financial harm to someone else. These lawsuits are a type of professional liability case, similar in concept to medical malpractice, but they apply to non-medical professions such as accountants, financial advisors, insurance agents, architects, engineers, and attorneys. (If the case is against an attorney, it may also be called legal malpractice.) The other difference is that while medical malpractice typically involves a physical injury, these lawsuits are usually about financial harm only.

When someone hires a professional, they rely on that person’s specialized training and expertise to perform their job carefully and correctly. If the professional fails to meet the expected standard of care or service, and that failure causes a significant financial loss, the harmed party may be able to file an E&O lawsuit.

Who Can Be Sued in an E&O Lawsuit?

Professionals across a wide range of industries can be targets of E&O lawsuits. Some of the most common include:

• Accountants who miscalculate taxes, misfile returns, or fail to uncover fraud.
• Financial advisors who make inappropriate investment recommendations or fail to disclose risks.
• Insurance agents or brokers who fail to obtain proper coverage or misrepresent a policy’s terms.
• Architects or engineers whose flawed designs cause delays or defects in construction projects.
• Attorneys who miss filing deadlines, misadvise clients, or fail to properly handle a case.

This is a partial list. It could be any type of professional. In most cases, the professional is personally named in the lawsuit and so is their employer or the company they work for.

Examples of E&O Claims

• An accountant forgets to file a key tax election for a business, leading to a large and unnecessary tax liability for the client.
• A real estate agent fails to disclose known water damage in a property, and the buyer later gets hit with huge repair costs.
• An insurance broker forgets to get business interruption coverage for a small business client, who later suffers a major loss during a supply chain shutdown.
• A financial planner recommends a risky investment that was clearly not in line with the client’s age and risk tolerance, resulting in hundreds of thousands of dollars in losses.
• An attorney fails to file a lawsuit before the statute of limitations runs out, permanently preventing the client from recovering damages.

In each of these cases, the client relied on the professional to act competently and was harmed financially when they did not. There are, of course, many other situations that would qualify for an E&O lawsuit.

When Is It Worth Bringing an E&O Lawsuit?

Not every professional mistake leads to a solid lawsuit. The key question is whether the mistake directly caused a substantial financial loss. For example, if your accountant made a minor calculation error that cost you $1,000, it’s probably not worth pursuing a lawsuit. You’d end up paying a lawyer by the hour, and that would cost more than the case is worth.

For us, when the loss exceeds $100,000 or more, it would likely make financial sense to take legal action. The attorneys we recommend work on a contingency basis. That means you pay nothing upfront, and the attorney only gets paid if they recover money for you.

Experienced E&O attorneys focus on cases involving clear negligence and significant financial harm. These are often complex cases requiring detailed investigation, expert witnesses, and a deep understanding of the industry standards. That is why they are selective and look for damages at or exceeding $100k.

Why You Need an Experienced Attorney

E&O lawsuits are not simple disputes. The insurance companies for professionals and their employers do not just give money away. You’ll need an attorney who knows how to navigate professional liability laws, gather evidence, work with experts, and build a strong case.

Waiting too long can also be a problem. Most E&O cases are subject to strict statutes of limitations, and if you miss the window to file, you may lose your rights entirely. 

If you’ve suffered a significant financial loss because of a professional’s negligence, we can help connect you with an experienced Illinois attorney who understands E&O law and works on a contingency basis. Contact us at 312-346-5320 for a free case evaluation.