What is E&O insurance
? Simply put, it is a slightly specializes type of professional liability insurance. It focuses on claims relating to failing to provide or providing a service. Specifically if a company or individuals are sued for negligent actions or inadequate work
, the liability will cover legal fees, which can easily amount to hundreds of thousands of dollars. Even if the defendants are vindicated, court and legal expenses can be crippling without E&O coverage.
Who Needs E&O Coverage?
Almost all working professionals who provide service can make use of E&O insurance. This includes:
- Insurance Brokers and Agents
- Medical Personnel
- Financial Planners
- Legal Professionals
- Real Estate Agents
Anyone who has employees or gives a direct service to clients should have this type of insurance. In these fields, it is likely that a slight miscalculation could hinder an entire project or account. Though it may be an honest mistake, it still may incite a lawsuit.
Why Is Coverage Necessary?
No matter how well a business is run, mistakes will happen. Especially if an enterprise has a large number of employees, it is likely that someone will make an error. While the insurance does not cover intentional oversight, it will protect against those unpredictable accidents.
What is E&O insurance? It is a safeguard against possible mistakes and legal fees. Lawsuits and malpractice claims can wipe out a business, even if they are proven false. E&O offers a safety net for vulnerable enterprises.