Professional Liability Errors And Omissions

Professional liability insurance pli also called professional indemnity insurance pii but more commonly known as errors omissions e o in the us is a form of liability insurance which helps protect professional advice and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client and damages awarded in such a civil.

Professional liability errors and omissions. Errors and omissions insurance protects you from claims of neglect or professional errors. Coverage designed to protect traditional professionals e g physicians and quasi professionals e g real estate brokers against liability incurred as a result of errors and omissions in performing professional services for clients or customers. Even though the insurance terms professional liability and errors and omissions are often used interchangeably there are subtle and important differences that you need to know about. The language used may differ by industry.

Bodily injury to others or damage to their property. As a professional operating in today s increasingly litigious environment you could easily be subject to allegations by unhappy clients who may feel they ve been harmed by your actions or inactions. This coverage is also known as professional liability insurance or e o coverage. Errors omissions e o insurance is professional liability insurance that protects businesses and individuals against claims made for inadequate work or negligent actions.

Professional liability insurance is coverage for businesses that protect against claims from their clients. Here is an industry definition from irmi of professional liability. They protect you and your company against real or perceived errors or mistakes in your work. This can include damages caused by things you did and or things that you should have done.

Errors and omissions insurance e o. Professional liability and errors and omissions insurance both protect businesses from expensive lawsuits caused by unsatisfactory work. Errors and omissions insurance e o is a type of professional liability insurance that protects companies and their workers or individuals against claims. Professional liability insurance commonly covers negligence copyright infringement personal injury and more.

Essentially e o insurance protects you when your customer or client accuses you of mistakes or oversights careless conduct breach of contract or incomplete work or substandard work. Insurance lingo isn t always easy to understand especially when a policy goes by multiple names. Errors and omissions coverage helps protect your business from financial loss if you make a mistake in your professional services or fail to provide a service.