Why E & O Insurance Is Needed

The letters e & o stand for errors and omissions insurance. There are also other names for this type of insurance but it always has the same meaning. Basically errors and omissions insurance is a form of malpractice protection for professional people. Any professional can be sued for negligence by a client or even by another professional. They must be prepared to fight such a legal action or settle it. With a good e & o policy in place the professional will not have to pay for a defense attorney or any damages awarded out of his own pocket.

Many states have laws that mandate professionals to carry professional errors and omissions insurance as a condition of being allowed to practice their profession.


It is important when choosing E & O insurance that the insurance provider is very familiar with the type of policies needed in the specific industry. The policy provider must also be very familiar with the requirements of all the laws pertaining to that profession that are applicable in that state. Otherwise there is a danger of not being in compliance with the regulations.

It is important that any employees and contractors of a business are covered by the correct policies to ensure that if there is a liability or negligence claim made against them that they are protected.

There are other factors involved to be considered when getting E & O insurance coverage. The extent of policy coverage required is a crucial factor as well as whether there are any employees of the business that also need coverage.

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