What is Errors& Omissions (E&O) insurance?

Errors & Omissions covers exactly what the names indicate.  It protects you from financial damages because of errors you make (like the rounding error) or omissions for things you should have done (prescribing a certain medicine or treatment).

Errors & Omissions is also known as “E&O,” and because it covers many industry groups, it is also known as Medical Malpractice, Architects & Engineers, Real Estate E&O, etc.  There are literally over one hundred subsets of E&O

Directors & Officers Liability is in the same family because it to protects directors and officers for errors in judgment or omissions in common practice that lead to financial loss to other parties, such as employees, state regulatory agencies, and even competitors.

Since the cause of loss are errors or omissions, liability policies do not cover these types of claims.  They typically cover bodily injury, property damage, and personal injury/advertising liability.

There is a good chance that your company has some exposure to E&O, from designing a computer program, designing a building or sprinkler system, or giving investment counseling advice.  We encourage you to contact our office to discuss your business need for E&O.  You will be glad that you did.  That is part of why we buy E&O coverage ourselves.