Mistakes happen. Protect your business against claims made for errors and omissions (E&O).
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Professional liability insurance is often called errors and omissions (E&O) coverage. It secures your business against claims made for reason of malpractice, negligence, or misrepresentation. These risks are beyond the scope of a business owners policy or general liability insurance.
Malpractice occurs when a person alleges that your business or an employee made an error while performing their duty, and the mistake harmed them or their property. Malpractice claims are more common among layers, financial professionals, medical practitioners, and public officials. E&O coverage pays for legal and settlement costs resulting from such claims.
Negligence is a failure to act when a situation merits it, and a person reasonably expects that a business will take action on their behalf. When a perceived inaction causes harm to the person or their property, they will allege that your business committed negligence. Professional liability insurance (E&O coverage) will pay legal costs and owed damages.
A person will make a misrepresentation claim when they believe a business was untruthful about something, and they or their business was harmed as a result of being mislead. E&O insurance secures your business against allegations of misrepresentation.
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