Errors and omissions insurance is also known as professional liability insurance, and may also be referred to as the abbreviated E&O insurance.

If you’re wondering what is errors and omissions insurance, you’re probably most concerned about what it covers. E&O insurance protects your professional services against claims of negligence or failure to fulfill obligations.

Errors and omissions insurance does not cover things like injuries, property damage, fraud, patent infringement, and so on.

Here is a more detailed breakdown of what is errors and omissions insurance and what it covers.

 

What is Errors and Omissions Insurance, And What Does it Cover?

Negligence

Errors and omissions insurance protects against alleged or actual negligence during the performance of your professional duties, including any claims of failing to fulfill your duties.

What is errors and omissions insurance? An example: You’re a web developer who builds an e-commerce store for a client. The site gets hacked and customer information is compromised.

You may get sued for damages even though it was not your intention for the site to get hacked. If something like this happens, you will be covered.

 

Libel or Slander

Errors and omissions insurance protects against claims of libel or slander, also referred to as personal injury claims, that arise as a result of you performing your professional duties.

What is errors and omissions insurance? An example: You happen to publish something online that another individual or entity believes to be libellous or slanderous.

You may get sued even if you can back up what you reported with actual facts. If something like this were to happen, you would be covered.

 

Copyright

An errors and omissions insurance policy covers you against allegations of infringing on a third party’s copyrights or trademarks.

What is errors and omissions insurance? An example: You run a marketing agency and create a new tagline for a company that, unknowingly, is too similar to another company’s.

You may get sued in this case even if you agree to change the slogan to something else. If something like that were to happen, you would be covered.

 

Services Completed by Others

If you have temporary staff or independent contractors working for you, errors and omissions insurance covers any claims against the professional services they provide on behalf of your company.

 

Defence Costs

Any costs incurred by legally defending your professional services against any of the above claims is covered by most E&O insurance policies, even if the lawsuit is proven to be groundless.

 

What is Errors and Omissions Insurance, And What Does it Not Cover?

Errors and omissions insurance does not cover the following:

  • Physical injury
  • Property damage
  • Fraud
  • Employment practices
  • False advertising
  • Patents
  • Failure to protect personal information
  • Other services not specified by your individual policy

 

What is Errors and Omissions Insurance, and How Can I Get Coverage?

You can get started by requesting your errors and omissions insurance quote online now, or if you’d like to speak with one of us directly you can call one of our licensed advisors. We’re here to help!