What Is Miscellaneous Professional Liability Insurance, and Why Private Companies May Need It?
Miscellaneous professional liability—sometimes called errors and omissions (E&O) liability— results from errors or omissions in the performance of professional services. Companies that perform professional services for others can make mistakes—overlook a critical piece of information, misstate a fact, be misunderstood, forget to do something, misplace something, etc.— and be sued by their clients over allegations such as: – Error, omission, or negligence in providing a service. – Failure to provide a service. – Fraud. – Improper documentation. – Malpractice. – Mismanagement. – Misrepresentation of facts. – Nondisclosure. – Violations of state and federal law (e.g., securities violations, violation of right to privacy, etc.). – And other allegations. It doesn’t help that professional service firms today offer their services in a business climate that features: -A lawsuit-conscious public fueled by media publicity, an overabundance of lawyers, a belief that everyone deserves to be compen
