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Do I need Errors and Admissions to protect my business?


E&O coverages, also known as Errors and Omissions coverages or Professional Liability Insurance, are insurance policies designed to protect professionals and businesses from liability arising from errors, mistakes, or negligence in the services they provide.

E&O coverage is typically applicable to professionals in various industries, such as doctors, lawyers, architects, engineers, consultants, insurance agents, and technology companies. The policy covers legal costs, settlements, and judgments associated with claims made by clients or third parties who allege financial loss or harm due to professional errors, omissions, or negligence.

The specific coverage and terms of an E&O policy can vary depending on the insurer and the industry. However, some common areas covered by E&O policies include:

  1. Professional errors or mistakes: This covers claims arising from errors, mistakes, or oversights made by professionals in their work. For example, a financial advisor giving incorrect investment advice that results in financial loss for a client.

  2. Negligence or breach of duty: This covers claims resulting from the failure to exercise reasonable care, skill, or diligence expected of a professional. For instance, a contractor failing to meet construction standards or building codes.

  3. Failure to deliver promised services: This covers claims when a professional fails to deliver services as promised in a contract or agreement. For example, a software developer not delivering a software product on time or as specified.

  4. Legal defense costs: E&O policies typically cover the costs of legal defense, including attorney fees, court costs, and settlements or judgments, up to the policy limits.

It's important to note that E&O coverage usually has limits and exclusions, so it's essential to review the policy details carefully to understand the specific coverage provided and any limitations or exclusions that may apply. Consulting with an insurance professional or broker can help in selecting the appropriate E&O coverage for a specific profession or business.


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