|What is errors and omissions insurance? |
Think of it as malpractice insurance. Errors and omissions (E & O) insurance protects certain professionals from liability claims or lawsuits arising from their carelessness (errors) or failure to take proper action (omissions). It's an important part of a comprehensive professional liability insurance package.
For example, assume you're an attorney who represents a client in a civil case. You missed the deadline for objecting to an important motion, causing your client to lose his case. If your client suffers financial loss and sues you, your E & O insurance may provide the financial protection you'll need.
Most E & O policies are tailored to meet the needs of a particular professional group, such as accountants, architects, insurance agents, lawyers, stockbrokers, travel agents, and others. You may be able to purchase an E & O policy through a professional or trade organization, often at a discount. Also, there are probably insurers in your state that sell E & O policies along with other forms of professional and commercial liability insurance.