Errors & omissions insurance claims — otherwise known as e&o claims — are an unavoidable fact of life in many industries. Errors & omissions insurance offers professional liability protection, and is vital for businesses doing all sorts of professional and consulting work. Understanding how e&o claims work, ensuring you have adequate coverage, and taking steps to avoid professional mistakes is essential for businesses to thrive.
What Does Errors & Omissions Insurance Cover?
Errors and omissions insurance effectively protects you and your business for liabilities that result from offering a service to others. E&o claims can vary fairly widely, but may involve the following cases:
- Mistakes, lapses, or unclear messaging in communicating with clients
- Failure to fulfill contracted services
- Accusations of poor service by a client
Claims can be quite diverse — for instance, if an architect advising a building project is sued due to a structural defect that arises in the project, he or she would have coverage under e&o insurance. Notably, even if you as a professional are not deemed liable, e&o insurance can help to cover high court costs.
In short, e&o insurance is essential to protecting your business and assets, and effectively dealing with any claims. It is vital to speak to your insurer to determine whether you are well-covered.