Errors and Omissions Insurance

What Is Errors and Omissions Insurance?

Errors and omissions insurance, or professional liability insurance, will protect you in case anyone ever brings a claim against you and your professional services. Errors and omissions insurance provides important coverage to professionals in a wide variety of fields, running the gamut from accountants to film crews to pet groomers to funeral home directors.

Due to its critical nature, it’s crucial for professionals to make sure they select an agent well-versed in errors and omissions insurance. Because general liability insurance is much different from E&O, even the most knowledgeable general liability agents usually don’t have the right expertise to provide the necessary errors & omissions coverage.

To find the right errors and omissions insurance for your needs, a simple online search to can help identify appropriate agents or brokers. Asking colleagues for referrals is another good option, while some professionals, such as CPAs, can check with their industry’s professional associations for suitable recommendations.

Once you’ve identified potential matches, ask if they can provide:

The number of errors and omissions policies in your profession on their


Several references

Payment options

Coverage for independent contractors and additional insureds

A policy tailored to your specific circumstances

The ability to choose from among several different carriers

The last item is particularly important: Each carrier offers slightly varied errors and omissions insurance – being able to compare endorsements and coverage helps ensure finding the very best policy for your needs.

After you’ve found the right E&O insurance agent for your business, the application process is usually the same: fill out an application, provide a resume, and include the insurance portion of the contract you’ll be working under (this allows the agent to tailor our errors and emissions policy directly to your needs without questions or uncertainties).

New businesses often are required to provide a business plan to help the agent determine the extent of their errors and omissions exposure.

Most errors & omissions insurance policies last for a full year and follow the company or individual for whom it was written. As you take on new projects or add staff, make sure to add specific names to your E&O policy as needed.

And, when renewal times rolls around, be sure to update your number of employees and revenue figures with your insurance agent.

Like so many things in life, an errors and omissions insurance policy is only as good as the effort you put into it. Be diligent in researching and vetting your E&O agent to ensure the best fit possible.


Errors and Omissions

Errors and Omissions

Insurance is always there to ensure that the different needs of all clients are met. There are various needs in insurance that has necessitated the need to have different types of insurances. Amongst the many is Errors & Omissions. This is not a very popular type of insurance known to the general public for only a few people use this type of insurance.

What is Errors & Omissions Insurance?

Errors and omissions is the type of insurance that insures an individual or a company against clients who sue them for a service provided or failed to be provided. It therefore cushions you against a client who will claim that you were negligent during your course of work.

Who needs Errors & Omissions Insurance?

Given its nature, professionals in different industries are the main targets. Doctors, lawyers, architects, engineers etc, are some of the professionals who need this type of insurance. This is because the nature of their work may lead them to several accusations from unsatisfied clients.

Insuring for an E&O does not mean that a professional is bound to make errors in his line of duty but rather act as a precaution should there an accusation be raised by a client.

When is the best time to get Errors & Omissions?

It is always good to get this insurance before any loss. You never know when an error will occur and get sued for it. Therefore, the sooner you get this cover the better for your business.

What does Errors & Omissions Cover?

Depending on the insurance company you sign with, an E&O will cover the court charges and even settlement claims. There is always a limit to the cover depending on the limit you had put while signing the contract.

Reasons why a Company need Errors & Omissions

Errors can occur any time; no matter how perfect your company may be. For this reason, there is need to be safe from future loses that may arise as a result of a slight error.

It is cheaper to pay the premiums of insurance than the huge court settlements that may be awarded against you in favor of the client.

With the peace of mind that you have insurance for errors and omissions, your confidence in service delivery will be boosted since you know you are covered. This works well for your business.

It is therefore very clear that Errors & Omissions is a viable insurance that truly help people.