E and O Insurance

Errors and Omissions (E & O) insurance, also known as professional liability insurance, protects organizations or individuals against claims of financial loss due to negligence in the provision of professional services. Professional liability related to errors or omissions, whether real or just perceived are not covered by liability insurance general .

(Responsibility general essentially covers claims for bodily injury or property damage.)

As the business climate becomes more complex, so do the insurance needs of business owners, regardless of whether they employ hundreds of consultants or operate as a limited liability company out of their home. http://www.eandoinsurance.net coverage is critical and protects enterprises in two vital areas: legal defense and settlement costs.

More E & O policies will cover the costs of defense, that even if the allegations are found invalid, can cost tens of thousands of dollars. For many small businesses and individuals, the high costs of legal defense could lead to serious financial strain or even bankruptcy.

Who is at risk?

Professionals who need the most commonly and & o insurance include doctors, lawyers, engineers and consultants. However, there are a handful of companies in which and & o coverage is often overlooked, these include advertising agencies, web hosting , companies, service providers, web and graphic designers and other service companies based on the Internet . Almost every organization that provides a professional service to a client for a fee and has & or exposure, and because the job requirements are usually defined in legal terms, professional liability insurance shields businesses from the unforeseen.