Errors & Omissions Insurance (Professional Liability)
Errors & Omissions (Professional Liability)
In order to practice certain professions, one must meet ethical and professional standards established for that profession. Failure to do so exposes one to the risk of lawsuits, commonly known as malpractice lawsuits, based on a breach of duty towards the client. What is important to realize is that malpractice does not have to be based in malice; a simple mistake can form the basis of a malpractice claim. Moreover, malpractice claims are relatively easy to make and can be difficult and time consuming to defend. Having Professional Liability Insurance can help protect you from those claims. Furthermore, Errors and Omissions coverage oftentimes covers the costs associated with defending yourself from those claims. Malpractice Insurance coverage costs vary according to profession, and not all professionals need that type of coverage. If you are an expert and your interactions with a client establish a fiduciary relationship that induces the clients to rely upon your advice, you may require Professional Liability Insurance. Commonly impacted professions include: doctors, lawyers, accountants, insurance agents, brokers, consultants, and financial service providers. However, other experts like plumbers and contractors have found the coverage helpful, as well. In fact, anyone who could face a lawsuit based on negligence in the performance of their work-duties might find Errors and Omissions coverage helpful.