Errors & Omissions

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.

What Is Errors and Omissions Insurance?

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.

What Are the Benefits of Errors and Omissions Insurance?

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.

Who Needs Errors and Omissions Insurance?

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.

Examples of those who would need errors and omissions Insurance:

  • Medical professionals: If a plastic surgeon has an off day and accidentally puts in butt implants instead of calf implants, the patient can file a negligence claim against them. This insurance can help to pay any costs involved in fixing the error as well as legal expenses.
  • Lawyers and legal professionals: Human errors in law sometimes equate to innocents going to prison and sometimes involve more life-or-death consequences. In order to avoid any business-ending misrepresentation or negligence claims, lawyers and law firms both typically have E&O insurance. It helps to cover anything they may miss due to having normal human brains. 
  • Engineers and architects: Bridge or building collapses do not sit well with the general public, and someone will come under heavy fire. Most likely it won’t be a slap on the wrist, so E&O coverage will help protect these professionals against some of the heavier monetary consequences. 
Errors & Omissions Insurance Coverages

It will generally pay for:

  • Legal expenses generated by a court case.
  • Monetary damages or settlements awarded to the plaintiff. 

It won’t pay:

  • For any fines accrued by the professional.
  • If the state or federal government is involved for criminal charges. 
  • If the negligence is covered somewhere else with another insurance policy.
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