Professional liability (E&O)
Additional Information
Even if you’re an expert in your business, mistakes happen.
And if your client or customer thinks a mistake in your professional services caused them a financial loss, they can sue you.
Professional liability insurance, also known as Errors and Omissions (E&O) insurance, helps cover you and your company if you make a mistake in your professional services.
Professional liability insurance can help cover claims of:
- Negligence
- Misrepresentation
- Inaccurate advice
Who needs E&O Insurance?
The best-known professionals who need E&O insurance are:
- Doctors
- Lawyers
- Accountants
- Architects
- Engineers, etc
However; less thought about businesses include:
- Advertising agencies
- Commercial printers
- Web hosting companies
- Wedding planners.
If you are in the business of providing a service to your client for a fee, you have an E&O exposure.You may want to consider what will happen if the service is not done correctly or on time, and it costs your client money or harms their reputation. Even if you didn’t do anything wrong, your client can still sue your business if they believe you made a mistake.Without coverage, you’ll have to pay expensive legal defense costs out of pocket.
