Professional Liability Insurance - E&O
Safeguard your expertise
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a contract between a professional and an insurance company for the purpose of providing protection against claims arising from negligence, errors, or omissions in the provision of professional services. It is essential for professionals, such as doctors, lawyers, architects, accountants, and other experts who provide specialized advice or services, as it covers legal defense and costs associated with claims from clients who claim that the professional has made errors or failed to meet the expected standard of care.
The main coverages include:
Liability for errors and omissions
- Covers legal costs and compensation resulting from claims stating that the professional made an error or negligence in the provision of services. This coverage protects against lawsuits alleging that professional services were not performed to an accepted standard, causing financial damage to the client.
Legal defense and court costs
- Covers legal expenses associated with defending against claims of negligence, errors or omissions. This includes attorney’s fees, investigation costs and other expenses necessary to defend the professional in a trial or during the dispute resolution process.
Settlement or judgment
- Covers the costs of settlements or judgments that the professional may have to pay as a result of a covered claim. This includes payments made to resolve disputes out of court or as part of a court judgment.
Regulatory violations
- Covers costs associated with defending against regulatory or disciplinary actions that may arise due to the provision of professional services. This coverage is especially important for professionals who are subject to oversight by regulatory bodies.
Subcontracted service
- Offers protection in the event that a claim is filed related to the work of subcontractors or suppliers who were hired by the insured professional. This is important for professionals who depend on third parties to provide certain services.
Errors by advisors or partners
- Extends coverage to errors committed by partners, advisors or employees of the company that affect the insured professional. This coverage is useful for firms or companies in which the risk may involve multiple people.
Additional considerations:
Coverage customization
- Professionals can adjust the policy to include additional coverages specific to their field of specialization or the particularities of their practice. For example, a lawyer may need coverage that focuses on claims related to legal advice, while an architect may require protection against design defects.
*It is important to keep in mind that the terms and conditions of the insurance companies may vary for each coverage. Therefore, it is essential to review carefully to fully understand the extension and any exclusions that may apply.
