Professional liability insurance, also known as Errors and Omissions (E&O), protects professionals and service-based businesses from claims of negligence, mistakes, or inadequate work. It covers the legal costs and potential damages if a client sues for financial losses resulting from the professional’s services, making it essential for anyone who provides advice or expertise for a fee.
- What It Is: Also known as Errors & Omissions (E&O), this policy protects service-providing professionals from claims of negligence, mistakes, or failure to perform.
- What It Covers:
- Negligence or Errors: A mistake in the service provided that causes a financial loss for the client.
- Omissions: Failure to provide a necessary service.
- Legal Defense Costs: Pays for lawyers and court costs, even if the claim is baseless.
- Who It’s For: Consultants, architects, accountants, lawyers, and other professionals.
- Key Considerations: It does not cover general liability claims like bodily injury.