As a business owner or self-employed individual who provides professional services, it’s important to safeguard your business against a range of potential claims that could threaten long-term financial stability. A proactive option for protecting your business is errors and omissions (E&O) insurance. Our insurance affiliate, Doeren Mayhew Insurance Group, explores what business owners need to know about E&O.

What is Errors and Omissions Insurance?

A company could be held liable for millions of dollars in damage and steep legal fees when facing claims of neglect or inaction. E&O insurance is a type of professional liability insurance that offers coverage to protect businesses against costly claims that its services — or failure to perform them — caused damage or financial losses.

Who Needs Error and Omissions Insurance?

Any specialized professional who offers services for a fee could benefit from securing E&O insurance. From the individuals in the financial industry to nonprofits, a number of professionals and business types should consider E&O to ensure long-term protection against claims of negligence.

What is Covered by Error Omissions Insurance?

This type of insurance will deliver peace of mind to any professional who has the potential to face claims that work mistakes, oversights and negligent acts were directly related to financial losses. E&O policies typically provide coverage for judgments, legal fees, court costs and settlements per the limits of the plan.

What is Not Covered by Error and Omissions Insurance?

While E&O covers expenses related to claims of errors and omissions, it does provide coverage for damage-related claims nor intentional wrongdoing. Be sure to review the exclusions of an E&O policy to ensure the areas in which you or your business are exposed are covered.

Doeren Mayhew Insurance Group understands that while mistakes at work happen, they can be wildly expensive. For more insights on the benefits of errors and omissions insurance for businesses, read their latest article here.