Professional liability insurance, also known as Errors & Omissions (E&O) insurance, protects businesses against claims of professional negligence, mistakes, or failure to deliver promised services.
Who Needs E&O Insurance?
Any business that provides professional services or advice should consider E&O insurance:
- Consultants and advisors
- Technology companies
- Healthcare providers
- Legal and accounting firms
- Real estate professionals
What E&O Insurance Covers
- Legal defense costs
- Settlements and judgments
- Claims of failure to deliver services
- Professional mistakes or omissions
- Breach of professional duty
Choosing Coverage Limits
Coverage limits should reflect your business's exposure to risk. Consider factors like:
- Size and value of client contracts
- Industry risk levels
- Geographic scope of operations
- Number of clients served