Professionals across most industries are vulnerable to lawsuits based on their performance or lack of performance if a client claims injury or damage as a result of an error or omission. For example, an insurance agent can be sued for allegedly neglecting to provide an umbrella liability policy to increase the limits on a policyholder’s auto and homeowners policies. The insured claims he didn’t know this was available and now he is in the middle of a multi-million-dollar lawsuit after an accident seriously injured the other driver. An architect is sued for alleged engineering errors that have caused a newly built home to experience significant water damage. An attorney is defending herself against a suit for losing a case due to an error in filing. All of these examples occur every day and require Errors & Omissions insurance.
Errors & Omissions (E&O) insurance is a must for all professional practices, and can help professionals pay for costs that fall outside of their general liability insurance protection. Costs incurred for settlements, damage awards and defense costs are typically covered under errors & omissions insurance. Some insurance companies offer policies that provide legal defense costs outside of liability limits, and it may even be possible, depending on the policy, to get legal expenses paid for from the first dollar forward.
Many professional classes can be covered under E&O insurance, including graphics designers, printers, consultants, investment advisors, physicians, lawyers, architects, accountants, insurance agencies, and more. Policies can also be designed for professionals who are winding down their careers but want coverage that will stick during their retirement.