Errors and Omissions (E&O) Insurance
Insurance Glossary
Errors and Omissions (E&O) insurance, also known as professional liability insurance, is a type of insurance that protects businesses and professionals from financial losses caused by mistakes, errors, or negligence in providing professional services. It covers legal defense costs, settlements, and judgments arising from claims alleging such errors or omissions.
Here’s a breakdown of E&O insurance
Who Needs It: E&O insurance is essential for a wide range of professionals and businesses, including:
- Consultants
- Financial advisors
- Insurance agents and brokers
- Lawyers
- Architects and engineers
- Technology companies
- Real estate agents
What’s Covered: E&O insurance typically covers claims alleging:
- Negligence: Failure to exercise reasonable care in providing professional services.
- Errors and omissions: Mistakes or oversights in professional advice or services.