Why have professional liability coverage? Truly, it is a no-brainer. If your company is in the business of providing services or giving advice to clients, you need the protection of a professional liability plan, better known as errors and omissions (E&O) insurance.

What Is E&O?

E&O insurance protects a professional and his company from claims of negligence (errors) and failure to adequately perform promised duties (omissions) that have caused a customer financial harm. E&O policies generally provide for payment of legal defense, court costs and any awarded damages, up to the terms of the plan. Such protection is not included in a business’s general liability policy.

Claims of fraudulent acts, false advertising and illegal activity are not covered by E&O insurance. Some of the more common claims of professional liability that are covered include:

• Poor advice
• Misrepresentation
• Negligence
• Copyright infringement
• Violation of good faith
• Violation of privacy

Customize Your Coverage

When considering the E&O policy that is right for you, choose a plan that is specific to your profession. Such a policy is likely to provide comprehensive protection that takes into accounts the exposures that are unique to your job.

Why have professional liability coverage? Why would you not? Mistakes, both real and imagined, happen. Protect your company with a customized E&O policy.