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Errors and Omissions

Common with professional services, will cover legal fees of lawsuits related to work performance. Business disputes, Negligence accusations, Work errors.

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ERRORS AND OMISSIONS

What is errors and omissions insurance?

Errors and omissions insurance

E&O insurance, also known as professional liability insurance, protects businesses against lawsuits brought by clients claiming that work was inaccurate, late, or never delivered.

When do businesses need errors and omissions (E&O insurance?

Errors and omissions (E&O insurance is liability coverage for professionals who make a living off their expertise. It covers the cost of lawsuits over professional work mistakes, such as an insurance agent failing to provide adequate coverage or a tax preparer making a costly accounting error. Your clients may request a certificate of insurance that shows you have this coverage before they do any work with you.

Errors and omissions policies typically cover:

Work mistakes and oversights
Undelivered services
Accusations of negligence
Missed deadlines

What’s the difference between errors and omissions and professional liability insurance?

Errors and omissions insurance is also called professional liability insurance. Different industries and professions use different names for the two policies, even though they offer identical coverage.

Professionals who use the term E&O include:

Insurance agents
Real estate agents and brokers

Tax preparers

IT / technology professionals

Mortgage Broker

Professionals who use the term professional liability include:

- Accountants

- Architects

- Consultants

- Engineers

Doctors, lawyers, and other professionals in the medical and legal fields refer to this policy as malpractice insurances.

How professional liability insurance protects different professions

Accountants and auditors

Errors and Omissions insurance for accountants and auditors covers the costs of lawsuits based on accounting errors, data entry errors, miscalculations, or lost documentation. Because the policy offers indirect financial protection for the client, some clients will require proof of insurance before they agree to work with your firm.

Real Estate Agent

Errors and Omissions insurance protects realtors against accusations of misrepresentation, escrow disputes, misstatements, forgery, and other possible scenario that a realtor might be exposed to while performing its professional services. An offer or bigger development might require this policy’s as protection.

IT / technology professionals

Errors and Omissions insurance for IT / Technology professionals would give financial compensation for lawsuits alleging ineffective advice or consultation on hardware, infrastructure, technology, service licenses, encryption, database management, cloud backup, or inaccurate projections. Before they agree to work with you, some clients may ask you to provide proof of errors and omissions insurance.

Insurance Agent

Errors and Omissions insurance would provide to insurance agent financial protection from lawsuits stemming from disputes from the sale of insurance, like forge signatures, problems with deadline during AEP / OEP, mistaments and more possible scenarios. You may need to provide errors and omissions to a client, partner, or carriers to be able to sell insurance products.

Will errors and omissions cover me even if the lawsuit is baseless?

Yes. Regardless of whether a claim against you is determined to be frivolous or not, your errors and omissions coverage would defend against a lawsuit claiming your professional neglect.

What’s the difference between errors and omissions and general liability coverages?

General liability coverage only protects against “third-party” damages for which you’re responsible (i.e. bodily injury to others or damage to their property . Errors and Omissions protects you from claims of neglect or professional errors

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