Errors and omissions (E&O) insurance is a type of business insurance that helps protect individuals and businesses that provide professional knowledge and services. And as we all know, people at all levels of a business are capable of mistakes or miscommunications. Clients of these businesses can potentially sue if they think they are given erroneous information or not given information at all.
Without E&O insurance, businesses may wholly responsible for the legal costs. E&O coverage, also called professional liability insurance, protects businesses from the financial risks associated with offering advice or services to clients.
Professionals Who Should Consider E&O
In today’s increasingly litigious society, many businesses are being sued by their customers. Professionals who provide advice to their customers should consider purchasing E&O insurance for protection against legal liability. This includes doctors, accountants, engineers and other professionals who could be sued based on information provided to the client.
How Does E&O Work?
When professionals are working for themselves, lawsuits may be paid for by their family household incomes. Any lawsuit that results in a win for their client directly affects their income. Most people don’t have savings they can tap into to take care of the cost of the bill. With an E&O policy, they wouldn’t have to worry about that. With the help of their insurance professional, they can protect their current lifestyle and pay the liability.
E&O insurance puts a barrier between professionals and their personal income, often allowing them to continue working despite being sued.
Get the coverage you need. Call U.S. E&O Brokers at (800) 460-6424 for more information on E&O insurance for insurance agencies.