What Does E&O Insurance Cover?

Why Is Errors and Omissions Insurance Important? Errors and Omissions (E&O) insurance, also known as Professional Liability Insurance, is a type of insurance that covers professionals against claims of negligence or mistakes made during their services. It is a critical policy for professionals who provide advice or services to clients. This insurance covers a wide range of professionals, including lawyers, doctors, accountants, engineers, architects, and other professionals who provide services to clients.

What does E&O insurance cover?

E&O insurance provides coverage for the following:

  1. Negligence: E&O insurance covers claims of negligence made against professionals. This includes failing to provide services as promised, making errors or omissions in work, and failing to meet professional standards of care.
  2. Breach of contract: E&O insurance covers claims of breach of contract. This includes failing to deliver services as promised, failing to meet deadlines, and not completing work according to the terms of the contract.
  3. Copyright infringement: E&O insurance covers claims of copyright infringement. This includes using copyrighted material without permission, using copyrighted material without proper attribution, and distributing copyrighted material without permission.
  4. Misrepresentation: E&O insurance covers claims of misrepresentation. This includes making false statements or misrepresentations about a product or service, making promises that cannot be kept, and failing to disclose important information.
  5. Professional liability: E&O insurance covers claims of professional liability. This includes claims that a professional did not meet the standard of care expected of them, or that they failed to provide services as promised.

What is not covered by E&O insurance?

E&O insurance does not cover claims of intentional wrongdoing or criminal activity. It also does not cover claims of bodily injury or property damage. These types of claims are typically covered by general liability insurance.

How to get E&O insurance?

Professionals can obtain E&O insurance by contacting an insurance broker or agent. The insurance company will require information about the professional’s business, including the type of services provided, the number of clients, and the revenue generated. Based on this information, the insurance company will provide a quote for coverage.

Conclusion

E&O insurance is an essential policy for professionals who provide advice or services to clients. It provides protection against claims of negligence or mistakes made during services. E&O insurance covers claims of negligence, breach of contract, copyright infringement, misrepresentation, and professional liability. It does not cover claims of intentional wrongdoing or criminal activity, bodily injury, or property damage. Professionals can obtain E&O insurance by contacting an insurance broker or agent.

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