Medical malpractice insurance is probably the most well-known form of professional liability insurance that’s used by professionals who don’t only provide advice but also execute a skill.
Anyone who’s unsure whether E&O insurance or another form of professional liability coverage is more appropriate for their situation should speak with an agent who specializes in these types of policies. A specialized insurance agent will be familiar with the different types of professional liability policies that are available and understand the nuances between the various options. The agent will be able to make an informed recommendation based on their knowledge.
What Sorts of Mistakes does E&O Insurance Cover?
E&O insurance is often adjusted to suit the risks that come with a professional’s particular field, so the incidents that these policies cover frequently vary. Nonetheless, most policies cover a range of possible mistakes. The following are some examples of situations that a particular policy, depending on its terms and conditions, may cover:
- A real estate agent neglects to note that a building is a historic landmark, and their client can’t renovate it as desired after purchase
- A paralegal fails to turn in documents by a given deadline, and the case of the firm’s client is jeopardized
- A financial advisor forgets to execute a trade as planned, and their client’s portfolio goes down in value
- An accountant misreads a figure when transposing tax documents, and their client faces tax penalties and interest later on
An insurance agent who’s familiar with these sorts of policies can explain in more detail what a given policy may cover.
Does Errors and Omissions Cover Pro-Bono Work for Charities?
Some errors and omissions policies may cover pro-bono work that professionals do for charities, but other policies may have more restrictive protections. Professionals who do a lot with charities and want to make sure their efforts are covered should carefully review any policy they’re considering with an informed insurance agent.
What Are Claims Made Insurance Policies?
Many errors and omissions policies are written as “claims made” insurance policies, which means they normally determine coverage based on when a claim is initially filed as opposed to when the error is alleged to have occurred. Policies are written this way because it is sometimes challenging to determine when precisely an error was made.
When reviewing claims made policies, there are two notable items that deserve special consideration:
- Most policies have a retroactive date that determines the earliest date an error can occur and be covered
- Some policies have discovery periods that extend coverage beyond the end date of when a policy ends
Retroactive dates are often the initial day of a policy’s effective period, but they can be different. Discovery periods can be anywhere from a few months to years.
What Types of Coverage doe E&O Policies Provide?
- Alleged or actual negligence
- Libel and slander
- International coverage
- Legal defense costs
- Copyright infringement
- Claims relating to past service
How Can Professionals Get Errors and Omissions Insurance?
For help finding errors and omissions insurance, contact the independent insurance agents at World Insurance Associates. Our agents have helped professionals in many fields with this coverage, and they’re ready to assist you.