Also known as professional liability insurance, E&O insurance covers professionals against third party damage claims that result from the covered company’s or individual’s services.
E&O insurance protects against charges of negligence or harm, based on a professional service or advice you provided, such as allegations of:
- Breach of professional duties
- Wrongful business practices
- Providing misleading advice, or
- Conflicts of interest.
These damages are not covered by a general liability policy.
E&O insurance covers:
- Defense costs
- Settlements, and
- Fines or penalties resulting from the allegations of misrepresentation, breach of professional services, wrongful business practices, misleading advice and conflict of interest.
There are a number of professions that need E&O insurance, including doctors, lawyers, event planners, project managers, accountants, IT professionals, brokers, and more.
You should consider professional liability insurance if your business provides:
- A professional service
- Regular professional advice, and/or
- Contractual services.