Errors & Omissions Insurance (“E&O”)
In any business, mistakes do happen. If those mistakes are costly, they can heavily impact the health of the company.
Errors and Omissions Insurance helps protect an organization in the event something has been missed. Where General Liability policies look to protect against property damage and physical liability suits, Errors and Omissions coverage is placed to protect your company and you in the event that a lawsuit – founded or unfounded – is filed relating to a service you provided, or failed to provide, that did not have the expected or promised results.
Errors and Omissions, also known as professional liability insurance, is a product that is designed to protect your business in the event that a customer or a client alleges that an error or neglect on your part resulted in a financial loss for their company. An errors and omissions policy covers damages that are not covered under a general liability insurance policy. General liability coverage only covers property and physical damage. What it does not cover is professional errors, negligence or malpractice.
Which Professionals need E&O Coverage?
- Brokers and Agents
- Management Consultants
- Information Technologists
- Software developers
- Website developers
- Landscape architects