What is e&o insurance?

Question

What is e&o insurance?

Answer 1

E & O insurance is literally Errors and Omissions insurance, also referred to as professional liability.

As an agent I described it as such:  A General Liability insurance policy will cover a claim where an incident, an accident or an occurrence has to taken place.

For an E & O (or professional liability) policy you are covered for something that didn't happen but should have happened. It is insurance for something you should have done but failed to do so.

To use an exagerration as an example would be a situation where the patient goes to see the doctor complaing of chest pains. Doctor prescribes Tums for gas and the patient later dies of a heart attack. The doctor is not liable for something he did (prescribing Tums) but is instead liable for something that he didn't do (diagnose a heart condition).

Answer 2

Errors and omission

Regardless of what kind of business you own, a customer can claim that something you did on their behalf was done incorrectly, and that this error cost them money or caused them harm. This insurance is designed to help cover your defense costs and ultimately the final judgment if you do not win the case.

http://www.insurepro.net/html/what_polic...

Answer 3

Errors and omissions.    Title Companies and Appraisers are a few examples of people who have E & O insurance.  It's incase they miss something or make a mistake.

Answer 4

Errors & Omissions, Professional Liability, and Malpractice are, basically, the same thing.  Professionals such as architects, engineers, doctors, attorneys, accountants, and insurance agents/brokers are just a few examples of those who need professional liability insurance.  An architect or engineer could make an error in the design of a building that might lead to a leaking roof, for example.  The additional costs to repair the roof would be paid to the building owner (claims are not usually that simple, but you get the point).  An attorney's client could be damaged if the attorney misses a deadline to file an important document in the courts.  A surgeon could leave a sponge inside a patient and cause discomfort and the need for another surgery for the patient.  There will be "damages" to pay.  Professional liability pays for damages caused by negligent acts, errors or omissions of the professional.