What is errors and omissions insurance designed to protect against?

What is errors and omissions insurance designed to protect against?

• A. Claims of fraud
• B. Negligence or inadequate work
• C. Property damage
• D. Cybersecurity breaches

Answer: (B)

Errors and omissions (E&O) insurance is specifically designed to protect professionals and businesses from claims that result from their failure to provide adequate services or their negligent actions. This type of insurance covers legal defense costs, settlements, and judgments related to allegations of negligence, such as failing to meet industry standards or providing incorrect advice. Professionals such as consultants, doctors, accountants, and insurance agents particularly benefit from this coverage since they might face claims from clients who believe they were harmed due to the professional's mistakes or inadequate work. In essence, E&O insurance serves to reassure professionals that they have a safety net in place should they find themselves facing litigation related to their services.

Errors and omissions (E&O) insurance is specifically designed to protect professionals and businesses from claims that result from their failure to provide adequate services or their negligent actions. This type of insurance covers legal defense costs, settlements, and judgments related to allegations of negligence, such as failing to meet industry standards or providing incorrect advice.

Professionals such as consultants, doctors, accountants, and insurance agents particularly benefit from this coverage since they might face claims from clients who believe they were harmed due to the professional's mistakes or inadequate work. In essence, E&O insurance serves to reassure professionals that they have a safety net in place should they find themselves facing litigation related to their services.