Errors and omissions (E&O) insurance (also known as professional liability insurance) is a vital component of the complete insurance package for many of today’s thriving businesses — but, how do you know if your company needs it? Whether or not you should be carrying E&O/ professional liability insurance largely depends on the nature of the services that you provide. Most of us are familiar with the malpractice insurance carried by health professionals, and E&O/ professional liability insurance insurance is not that different. E&O insurance is carried by businesses who have the potential to make errors (or omissions) that could open up the business to substantial liability. E&O/ professional liability insurance coverage typically covers judgments, settlements, and defense costs associated with legal action arising from an E&O claim.

Who Typically Carries E&O Insurance?

Doctors, lawyers, accountants, architects, engineers, consultants and other professionals carry E&O insurance as part of their standard insurance package. These professions require that practitioners protect themselves from mistakes that can happen from time to­ time, even to the best of us. Even if you are not working in one of the aforementioned fields, E&O/ professional liability insurance is beneficial for those in professions such as designers, event planners, caterers — basically any profession where an oversight or error could result in costly litigation.

Steers Insurance Can Help Select The Right Coverage

There are a lot of questions associated with E&O coverage/ professional liability insurance, and your best resource is your professional insurance agent. Your agent can help select a policy that covers the specific exposures associated with your industry, ensuring that you’re paying for coverage that fits your needs. E&O coverage / professional liability insurance can be a complicated product, so an experienced agent is going to be your greatest asset in exploring this important insurance.