Errors and omissions (E&O) insurance, also known as professional liability insurance, can provide financial protection if you’re sued for mistakes or negligence in the course of providing professional services. The coverage typically includes damages arising from mistakes, errors or omissions in the performance of professional services.
Generally, E&O insurance covers the following types of losses:
-Financial Loss: Court awards and settlements paid to compensate financial losses resulting from an act, error or omission in the course of providing professional services.
-Defense Costs: Legal costs associated with defending a claim, including attorney’s fees, court costs and settlement costs.
-Privacy and Data Liability Losses: Losses resulting from a breach of privacy or security measures that protect electronic data, such as stolen customer information.
-Reputational Harm: Losses resulting from a decline in your good name or reputation due to an act, error or omission in the course of providing professional services.
-Cyber Liability and Media Liability: Expenses related to the failure or breach of a website, the release of confidential information, or libel and slander claims related to professional services.
It’s important to remember that E&O insurance does not protect from every lawsuit or liability. Coverage depends on the specific policy and the situation. You should always check with your insurance provider to see what losses are covered by your E&O policy.
