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Errors and omissions insuranceSometimes simply referred to as E&O, errors and omissions insurance is a form of professional liability insurance that covers a business or professional against claims of negligence or failure to perform professional duties. Errors and omissions is an umbrella term that includes all types of malpractice insurance.

An errors and omissions policy will typically cover related court costs and any settlements up to a specified amount.

Who Needs Errors and Omissions Insurance

E&O insurance is typically designed for doctors, lawyers and financial professionals, such as financial planners, investment strategists and advisors, and insurance brokers. These professionals make decisions every day that can impact the physical and financial safety and wellbeing of their clientele.

Lawsuits are common in all of the above-mentioned industries, regardless of how baseless the claims may be. For example, even if a financial professional clearly spells out the risks involved in an investment, if that investment goes south, there’s chance the client will sue. Even if the case works out in the favor of the professional, the costs can be astronomical.

The same is true in the medical world. We are, after all, only human and we make mistakes.

If you’re in an industry in which your daily duties can and do impact the financial and physical lives of your clients, errors and omissions insurance is a must.

E&O Coverage Examples

Errors and omissions insurance covers many areas. Here are a few:

  • Negligence
  • Personal injury
  • Copyright infringement
  • Defense expenses


Whether actual or alleged, professional negligence can take down even the strongest companies. E&O insurance is highly recommended to protect any company against claims of alleged negligence, which can include providing incorrect information or making a mistake.

Personal injury

Not to be confused with bodily injury or property damage, personal injury protects you and your business against claims of slander or libel that appear as a result of your professional work.

Copyright infringement

Since errors and omissions, insurance can be customized to fit your specific business, it is important to make sure you’re covered in the event of copyright infringement. Consider this scenario: You’re a software developer and one of your coders accidentally uses copyright protected code from another developer. You may have just opened yourself up to a lawsuit.

Defense expenses

Perhaps the greatest benefit to E&O insurance is that it covers court costs and legal fees in the event that you are sued. Even if there are no solid grounds for a lawsuit, the insurance policy will protect you. Some policies will even pay supplemental expenses incurred as a result of a trial or arbitrations, such as travel.

Learn more about E&O insurance

For more information on errors and omissions insurance or to make sure your errors and omissions policy is sufficient for your needs, speak with one of the licensed associates at Brashears Insurance today.