Professional liability insurance is also called insurance for errors and omissions and is designed to cover those who offer their expertise as a means of making a living. This coverage is not to be confused with general liability insurance, which protects businesses from the type of general accidents that can happen anywhere. These policies are separate, yet complementary to each other and expand coverage for smaller businesses and individuals.
What Does E&O Insurance Cover?
E&O coverage tackles the unique lawsuits faced by experts in a variety of fields, from doctors and lawyers to architects, engineers, IT consultants and others. For those in business for themselves, it is essential to cover claims that can be made against them for:
- Mistakes in work
- Unintended results
- Services not provided
- Negligent or careless services
To deliver expert-level services in any field, professionals must meet industry standards for their work. Failure to do so, or even the perception that they failed to do so, leaves them open to lawsuits.
Types of Professional Services Covered
E&O coverage can be applied to many different circumstances, including accounting mistakes that cost a client several thousand dollars or beauty treatments that burn a customer’s skin because the wrong ingredients were applied. More examples can include instances in which photographer damage a couple’s only wedding photos and personal trainers who promise amazing weight loss or slim and trim physiques that just don’t occur.