Errors and Omissions Insurance (E&O)
Candlefocus EditorE&O is often required by certain services and can serve an important role for professionals across a variety of industries. Professionals who provide professional services require E&O insurance including financial services, insurance agents, doctors, lawyers, and wedding planners. However, E&O insurance does not cover criminal activity or many other forms of damage that are typically covered by other forms of insurance.
E&O insurance helps professionals prepare for a variety of unforeseen events and offers protection against lawsuits that result from the provision of services. E&O insurance specifically can provide coverage for:
* Claims resulting from a failure to deliver promised services * Claims resulting from incorrect advice or recommendations * Claims resulting from negligence or errors * Claims against acts of infringement upon copyright, patent, and trademark.
E&O insurance costs will vary based on the industry of the provider and the projected risk. Most companies can obtain coverage for less than $1,000 per year, although individual policies may require more based on their profession and industry. Some insurance providers offer coverage tailored to particular industries and specific professional services, so it's best to research and shop around for a policy that meets all of the provider's need.
Overall, E&O insurance helps to protect professionals from the costs associated with legal liability and potential lawsuits that can arise from mistakes or negligence. E&O insurance is a valuable tool for businesses and professionals to prevent financial loss resulting from their services. It is important for professionals to restrict the kinds of damages that E&O does not cover and make sure to purchase policies that meet the coverage needs of their individual industry.