What is it for?
Errors and omissions insurance, commonly referred to as E&O, is protection against claims that you or your company has been negligent while providing advice or care to a client. Anytime professional advice is being given, there is the potential for human error or miscommunication. If a client believes that important information was withheld or left out, there is the potential for a lawsuit down the line. Any claims filed in response to perceived harm to a client, at the hands of professional guidance, could trigger an E&O policy.
Who does it cover?
Both individual professionals and those who work within a professional group are potentially eligible for E&O coverage. E&O commonly covers insurance brokers, financial planners, investment advisors, health care providers and mental health practitioners. Pretty much anyone from wedding planners to computer programmers or general contractors could benefit from E&O coverage.
Why should you get it?
If your business includes providing advice to clients, you should make sure that you are fully covered. In the event that your advice leads to an unfavorable outcome, clients may feel slighted and seek retribution. Even if you have built up great relationships with your clients, you must protect your business against the worst case scenario. Whether you are guiding others in matters of their health, finances or legal matters, E&O coverage should be an integral part of your professional liability insurance plan.
by Anastasia Climan – Content Creator at Half Full Marketing