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Insurance Agents & Brokers
Professional Liability
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Allied Medical Professional
Liability |
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Lawyers Professional Liability |
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Architects & Engineers
Professional Liability |
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Real Estate Agents & Brokers
Professional Liability |
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Directors & Officers Professional Liability |
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Miscellaneous Professional
Liability |
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What Is Errors And Omissions (E&O) Insurance? |
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Errors and Omissions Insurance is business liability insurance for professionals such
as insurance agents, real estate agents and brokers, architects, third party
administrators and other business professionals. An error or omission, a mistake,
which causes financial harm to another, can occur on almost any transaction in any
profession. This type of insurance helps to protect a professional, an individual or a
company, from bearing the full cost of defense for lawsuits relating to an error or
omission in providing covered Professional Services. This is a separate coverage
from a standard general liability or property insurance policy. |
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Errors and Omissions Insurance may be referred to as any of the following: |
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E & O |
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E&O Insurance |
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Errors Omissions |
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Errors & Omissions |
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Professional Liability |
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Professional Liability Insurance |
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Malpractice (legal and medical professionals) |
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What Does Errors and Omissions Insurance Cover? |
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All E&O insurance policies are unique and therefore have different
coverages and exclusions. However, in general E&O insurance is
designed to help pay for defense costs and the damage awards
associated with professional liability claims. Even the most diligent
professional can be held liable for a professional error, omission or
mistake. 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.
A Professional liability claim must allege negligence in either the
performance of or failure to perform Professional Services. Errors
and omissions insurance policies have a specific limit of liability and
usually include both legal costs and damage awards in a single limit.
E&O insurance does not cover intentional, fraudulent or illegal
activities or in most policies, punitive damages.
Remember all policies are unique, therefore not all claims may be
covered in a policy and you should read your policy very carefully. |
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Why Should My Firm Purchase Errors and Omissions
Insurance? |
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Lawsuits aren't just about negligence; they are about allegations of
negligence. We live in a litigious environment where any
professional can be sued. Many innocent parties are brought into a
suit simply because they are part of a transaction. In other words,
the alleged error or omission does not have to be your error or
omission. Defending the reputation of your business, whether the
allegation is frivolous or not can still result in lost productivity and
legal costs exceeding hundreds of thousands of dollars.
Errors and Omissions Insurance allows you plan ahead and transfer
a portion of the risk of unpredictable legal expenditures to the
insurance carrier, reducing the financial impact of an allegation
against your business. |
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