MONDAY, DECEMBER 20, 2021
Many people commonly use lawsuits to settle disputes. Unfortunately, this means that your business may be at risk of being sued at some point. But you can protect yourself and your business with professional liability coverage, also known as errors and omissions (E&O) insurance.
What Is E&O Insurance?
E&O insurance is supplementary liability insurance. It enhances your business owner’s policy by safeguarding against financial loss if there is a lawsuit due to a negligent act, error or omission by you. In addition, E&O insurance can protect against slander, libel and breach of contract.
How Does E&O Insurance Work?
E&O coverage kicks in when your commercial general liability policy doesn’t provide coverage, such as for service errors, contract performance disputes or other professional liability issues. An E&O policy may also include defense costs, which can be substantial even if liability is not found. Usually, policies don’t cover non-financial losses, intentional or dishonest acts.
E&O policies typically have both a claim limit and an annual limit, based on your level of exposure. The claim limit is the maximum amount paid for any single event, and the annual limit is the maximum paid in any one year. To be eligible for E&O insurance, you usually need proof of licensure in your covered class of business.
Who Needs E&O Coverage?
If you provide advice, make educated recommendations, design solutions or represent others, you may benefit from E&O coverage. Numerous professionals may be good candidates for E&O insurance, including:

You may be able to include professional liability coverage as an endorsement in a commercial package policy (CPP). E&O coverage isn’t usually included in an in-home business policy or a business owners policy (BOP). Pro Risk Advisors can help determine if you may need professional liability coverage.
Do I Need E&O Insurance?
There are many different types of professional liability insurance. When considering E&O coverage for your business, contact Pro Risk Advisors. Our experienced agents can work with you to design a policy to meet your needs.
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