Errors and omissions insurance (E&O), also known as professional liability insurance, protects businesses and professionals from financial losses resulting from mistakes, errors, or omissions in their work. Common examples of E&O insurance include medical malpractice insurance for healthcare providers, legal malpractice insurance for attorneys, and directors and officers (D&O) insurance for corporate executives.
E&O insurance is crucial because it provides a safety net for businesses and professionals in the event of a lawsuit. It can help cover legal defense costs, settlements, and judgments, as well as reputational damage. Additionally, E&O insurance can provide peace of mind, allowing businesses and professionals to focus on their work without worrying about potential financial liabilities.