Insurance Read Time: 2 min

Errors and Omissions Insurance

Errors and Omissions (E&O) insurance has many names. For some healthcare professionals, it's called malpractice insurance. For lawyers, it may be called professional liability insurance.

Whatever name it goes by, E&O insurance is designed to protect you or your company from potential financial damages that may arise from a client holding you responsible for a service you provided that did not meet an expected or promised outcome. Some E&O policies are designed to protect you from claims of a failure to provide a service. E&O covers risks that your general liability insurance policy probably does not.¹

Most E&O policies cover judgments, settlements, and defense costs associated with any civil suits initiated by a dissatisfied client.

Who Should Consider?

While E&O insurance is commonly associated with professionals such as doctors, lawyers, and financial professionals, anyone in the business of providing a service for a fee should consider obtaining coverage. Whatever your profession, try to imagine your potential liability if the work performed by you or your employees was not properly done.

Most errors and omissions insurance can be structured to meet the specific needs of your business. For example, a wedding planner has a different risk exposure than an accountant, necessitating a different form of coverage.

1. The information in this material is not intended as legal advice. Please consult a legal professional for specific information regarding your individual situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

When to Self-Insure

When to Self-Insure

Choosing to bear the financial burden of an adverse event is called self-insuring. Do you know what that entails?

Jane Bond: Scaling the Ladder

Jane Bond: Scaling the Ladder

Agent Jane Bond is on the case, uncovering the mystery of bond laddering.

Ways to Supplement Your Medicare Coverage

Ways to Supplement Your Medicare Coverage

There are numerous ways to supplement your Medicare insurance coverage. This article helps you explore your options.

 

Have A Question About This Topic?







Thank you! Oops!

Social Security: Five Facts You Need to Know

Here are five facts about Social Security that are important to keep in mind.

Investment Challenges of the Affluent Investor

Affluent investors face unique challenges when putting together an investment strategy. Make sure you keep these in mind.

Understanding the Basics of Medigap Policies

Important as it is, Medicare does not cover the full range of health-care expenses you may experience in your golden years.

View all articles

Federal Income Tax

Use this calculator to estimate your income tax liability along with average and marginal tax rates.

Tax Freedom Day

Assess how many days you'll work to pay your federal tax liability.

Inflation & Retirement

Estimate how much income may be needed at retirement to maintain your standard of living.

View all calculators

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

Estate Management 101

A will may be only one of the documents you need—and one factor to consider—when it comes to managing your estate.

The Cost of Procrastination

Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time.

To Buy or Not to Buy

The decision whether to buy or rent a home may have long-term implications.

View all videos