Errors and Omissions (E&O) Insurance, also known as Professional Liability Insurance, protects businesses and professionals from claims of negligence, errors, or omissions in the services they provide. This insurance covers legal defense costs and any settlements or judgments that may arise from such claims.
E&O Insurance typically includes the following coverages:
Businesses and professionals that provide advice, consulting, or specialized services should consider E&O Insurance. This includes industries such as legal, medical, financial services, real estate, marketing, and IT consulting.
E&O Insurance may cover breach of contract claims, but this depends on the specific terms of your policy. It's important to review your coverage details or consult with your insurance provider.
E&O Insurance is not typically required by law, but it may be mandated by professional associations, industry regulations, or client contracts.
In some cases, E&O Insurance can be bundled with General Liability Insurance, but it is often sold as a separate policy due to the specialized nature of the coverage.