Errors and Omissions Insurance

What is Errors & Omissions Insurance?

Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.  Errors and Omission is also known as Professional Liability Insurance, and in the medical field as Malpractice Insurance.  Often these claims result not only in physical injuries or damage, but in a resulting loss of income to the claimants which can lead to significant claims.  For example, the computer programmer whose work causes a corporations system to go down, may face a potentially devastating claim for lost income, illustrating the need for professional liability coverage.

Coverage includes legal defense costs - no matter how baseless the allegations. Errors and Omissions Insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.

Why Do I need Errors and Omissions Insurance?

Any professional can be sued for an error or omission. Even the most diligent professional can be held liable or be sued for a professional error, omission or mistake. Errors and omissions insurance helps protect a professional both for claims relating to mistakes and claims relating to allegations of errors or omissions. Defense costs are a significant portion of the cost of an errors and omissions insurance policy. It is not uncommon for a professional to spend thousands of dollars on defense costs for a matter that ultimately gets dismissed

As a professional you are held to a higher standard than the general public – failure to meet these standard can result in an errors and omissions claim.