Even if you’re a seasoned pro at the top of your game, you’re still human (we’re assuming), and being human comes with the unfortunate reality of making mistakes.
If you work in a field that offers services or advice to others, these inevitable mistakes come with much higher consequences, not only to you, but also to your reputation.
Thankfully, there’s coverage that can help you keep a tight grip on your street cred if anything goes sour.
E&O insurance, aka professional liability insurance, is a type of liability insurance that will help pay for any damages a professional error may cause. Damages are typically costs affiliated with claims made by a client for things like negligence, misrepresentation, and inaccurate advice, among others.
Sometimes advice or services don’t go as planned, and those errors could spell disaster for all the parties involved. E&O coverage is there to help keep your business afloat if faced with a potentially bank-breaking lawsuit.
E&O insurance is not mandatory, but it could be argued that it’s vital to the survival of certain professions. These include anything that involves providing advice or a service and extend across a number of industries.
It will generally pay for:
It won’t pay: