Errors and Omissions Insurance: An Overview

If you own a company or offer a service, you may have heard of errors and omissions insurance. Maybe one of your colleagues was discussing it, or maybe your insurance company suggested you learn more about it. But just what is errors and omissions insurance, and how do you know if you need it?

Errors and Omissions Insurance in Summary

Often called E&O insurance, this type of coverage protects you or your business in the event that a client attempts to hold you responsible or pursue a claim against you for a service you either provided, or failed to provide. You may be targeted if your client feels your service failed to deliver the expected or promised outcome or perceives another form of wrongdoing for which you or your business is responsible.

Who Needs E&O Insurance?

Essentially, anyone who has a business that offers some type of service is at risk for being held responsible if a client feels you’ve done them financial harm. The degree to how much you need it depends on the type of work you do. If your line of work has high potential for liability, E&O insurance is essential.

The Bottom Line

So, just what is errors and omissions insurance? In short, this coverage protects you if an error or omission on your part results in a financial loss for another.  

About the author

Kraft Writer

View all posts