WHAT IS ERRORS AND OMISSIONS (E&O) INSURANCE AND WHY DO I NEED IT?
Professional Liability insurance is also called “errors and omissions”, “E&O”, or “malpractice” insurance and is a form of insurance designed to protect professionals and professional organizations from financial loss from their negligence. E&O coverage protects an individual or a company from claims alleging failure or error in the provision of services that result in financial damages to your clients. Coverage includes legal defense costs, no matter how baseless the accusations may be, and the policy will pay for any resulting judgments, including court costs, up to the policy limits. Policies typically do not provide coverage for non-financial losses or for intentional or dishonest acts. (See our FAQ section on Fidelity Bonds for coverage in this area.) Professional liability policies are typically written on a claims-made basis.
