Errors and Omissions Insurance
Protecting Professionals Against Mistakes and Negligence
What is Errors and Omissions Insurance?
Errors and Omissions Insurance is a form of professional liability insurance that protects businesses and individuals from financial losses due to claims of errors, negligence, or failures in the services they provide.
E&O coverage is particularly important for professions where specialized advice or services are offered, such as consultants, lawyers, accountants, real estate agents, and IT professionals.
Key Benefits of E&O Insurance
Legal Defense Coverage
Covers legal costs, even if the claim is unfounded.
Financial Protection
Provides financial coverage for settlements or judgments in negligence claims.
Reputation Management
Helps protect a professional’s reputation by ensuring they have the resources to address legal challenges.
Client Confidence
Offering E&O coverage shows clients that a business is responsible and prepared to address mistakes or issues.
Industries That Need E&O Insurance
Consultants
Management and financial consultants need E&O insurance to protect against errors in professional advice.
Legal and Financial Services
Lawyers, accountants, and financial advisors benefit from E&O coverage in case of oversight or calculation errors.
Technology Services
IT professionals can face claims related to software failures, data breaches, or technology errors.
Real Estate Professionals
Agents and brokers need protection against claims related to property transactions.
How E&O Insurance Works
Application
The client applies for coverage, detailing their business activities, industry, and specific risks.
Underwriting
The insurance provider assesses the client’s risk level, business size, and industry history.
Policy Issuance
Once approved, the policy is issued, providing coverage for potential claims of negligence, errors, or omissions.
Claims Process
If a claim is filed, the E&O policy covers legal defense costs and, if necessary, any settlements or judgments
Why Brokers Should Offer E&O Insurance
Comprehensive Risk Management
Help clients manage their professional liabilities with tailored E&O coverage.
Broaden Service Offerings
Offering E&O insurance helps brokers meet the specific needs of professionals in high-risk industries.
Build Long-Term Client Relationships
Providing specialized coverage like E&O strengthens your position as a trusted risk management advisor.
Contact Us for Errors and Omissions Insurance Solutions
Protect your clients from the financial and legal risks associated with professional mistakes. Contact our team to learn how E&O insurance can safeguard their business.
FAQs about Errors and Omissions Insurance
Who needs E&O insurance?
Professionals who provide advice or services, such as consultants, lawyers, and accountants, need E&O
insurance to protect against negligence claims.
What does E&O insurance cover?
It covers legal defense costs, settlements, and judgments related to negligence, errors, or omissions
in professional services.
Is E&O insurance required by law?
While not required by law, many industries and clients require professionals to carry E&O insurance.
How much does E&O insurance cost?
The cost depends on the business size, industry, and level of risk, but policies are generally
affordable for most professionals.
Can E&O insurance cover past mistakes?
Yes, many E&O policies include coverage for past services rendered, as long as the policy is in effect
when the claim is made.
