Errors and omissions (E&O) insurance is a type of professional liability insurance that provides coverage for businesses and individuals that offer a professional service. This insurance is designated to protect professionals from lawsuits or claims made by clients who allege that the professional provided inadequate or negligent services, failed to provide services altogether, or made errors or omissions while servicing.
E&O insurance can provide coverage for a wide range of professionals, including but not limited to lawyers, real estate agents, financial advisors, construction companies, and more. This coverage is generally recommended to any business that provides a professional service, regardless of the size of your company.
The coverage provided by E&O insurance can vary case to case depending on the policy and the profession of the insured. Usually, E&O insurance can provide coverage for legal defense costs, settlements, and judgements related to claims or lawsuits arising from a professional service you provided. It can also cover damage caused by mistakes, errors, or omissions in a professional service.
It should be pointed out that E&O insurance doesn’t cover intentional or criminal acts or fraud. Additionally, policies may have specific exclusions or limitations, so it’s recommended you review the policy carefully to understand what is and isn’t covered.
In conclusion, errors and omissions insurance is an important type of professional liability insurance that can provide necessary protection for professionals providing services that requires a particular knowledge or advice. It can help protect against claims or lawsuits related to mistakes, errors, or omissions in professional services, and can provide coverage for legal defense costs, settlements, and judgements.
If you think your business may need E&O insurance, reach out to the Oxford Risk team!