What Is Errors & Omissions Liability Insurance?


Errors and omissions insurance covers professionals for errors or oversights that occur when providing services. It typically covers the costs of legal defense, judgments and settlements. This protection is vital if you take on significant risk of liability in your profession.

Malpractice Insurance

  • E & O insurance is known by a few names. Medical professionals -- including doctors, dentists and surgeons -- typically purchase a form of liability insurance known as malpractice insurance. Health care professionals face potential lawsuits when their care contributes to health problems or when they fail to effectively treat a patient. Malpractice coverage is often expensive based on the high risk to insurance providers of paying out claims.

Professional Liability Insurance

  • The other general category of E & O insurance is known as professional liability insurance. Many professionals -- including lawyers, engineers and accountants -- purchase these policies. The purpose of the protection is to pay for costs that result when the professional makes a damaging mistake. An engineer could face a lawsuit if he renders a blueprint that contributes to a major building or bridge failure. When your career involves the delivery of services to others, you have exposure to lawsuits. Professional liability reduces your personal risk.


  • Photo Credit Hlib Shabashnyi/iStock/Getty Images
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