E&O Insurance, more commonly known as Errors and Omissions insurance helps to protect you from financial loss due to lawsuits brought against you for alleged mistakes as a professional. The public is much more aware of its legal and contractual rights and whether right or wrong, many people think that legal action is the way to go in order to seek comfort for a turn of events that did not result as expected.
As professionals, our reputation must proceed us. We work many years to attain the designations, degrees, education and expertise in our fields. Public sentiment quickly assigns blame in today’s age and as such we need an avenue of defense that ensures adequate funds to defend our names.
When I speak about professionals here, I am describing people who are paid for their work activities, their service or their advice. As a licensed insurance broker, I have to adhere to strict standards of conduct. Doctors, lawyers, architects, accountants, nurses, mortgage brokers, software developers etc are paid for their expertise in their field of employ. They have a duty to educate themselves and to provide you the best advice and service they can.
Errors and Omissions insurance is specialized coverage that is tailored to suit the potential risks associated with each specific profession. It helps you to defend against allegations and to compensate a claimant if the insurer deems it less expensive than a drawn out case. It also helps to protect the assets of the individual or the corporation it is defending.
As a professional, you need this coverage. This is usually a coverage that stands by itself and does not protect you against bodily injury or property damage claims – you will need commercial general liability coverage for that.
E&O insurance is an integral part of your professional insurance package and you should ensure that the broker you are dealing with understands your scenario and seeks the right insurer that can properly address any potential claim scenarios.
Don’t forget, a lifetime spend achieving the status of an expert could be summarily washed away by not being able to defend yourself from wrongful allegations. E&O can take that financial burden off your shoulders.