In every profession where an expert is liable, there is a great risk in providing a product or giving advice. As a professional in your field, your written word is indeed your bond. Whether the advice or treatment is inappropriate, ineffective, untimely or nonexistent, a lawsuit is likely. A doctor involved in malpractice is a perfect example of liability if it can be proven. Those in the medical professional are often required to have malpractice insurance. There also exists a niche where E&O insurance is designed to fit. Errors and omissions insurance is an iteration of liability insurance that is designed to protect specific professionals from taking on the entire cost of a negligence claim and any awarded damages.
Errors And Omissions
Depending on profession, liability insurance is divided into different subgroups and given different names. E&O insurance is specifically designed for professional who provide any type of consulting service, those in financial brokerage, attorneys, notaries and even insurance agents. Quite often, traditional liability coverage is not sufficient for certain professionals because it often deals with a more direct form of harm or damage, such as personal injury or property damage. Errors and omissions can cover potential claims coming from negligence, deliberately misleading advice. While these claims must be proven by the plaintiff, the insurance can greatly protect professionals in the event the claim holds water.