Errors and Omissions insurance (E&O), a form of profressional liability, is designed to protect employees and employers against clients' claims of negligence or inadequate work.
E&O policies usually cover legal costs associated with the claim and most or all of the ensuing settlement, though a policy may not cover the entire settlement if the amount exceeds the limit specified in the insurance contract. In many industries, lawsuits happen whether the associated claims are legitimate or not.
Who needs Errors and Omissions Insurance?
E&O insurance is useful whenever you or your employees provide a service that a client could claim is inadequate or tied to negligence.