People who work in a professional capacity are expected to apply their expertise properly, and they might be held responsible should they fail to do so. Should a mistake lead to substantial financial loss or other harm to a third party, the professional who committed their error might be sued for damages and other expenses. Errors & omissions insurance policies help protect Massachusetts professionals from some for the financial consequences they could face if they ever made a major error while working.
Errors & omissions insurance is a form of professional liability insurance. Like other types of liability coverage, errors & omissions usually helps pay legal defense fees and settlements (up to a policy’s limits) in the event of a covered claim. Help with defense fee costs normally begins when a claim is filed, and typically is offered irrespective of the eventual outcome of a claim or lawsuit.
E&O insurance is a common form of professional liability insurance that’s used across an array of professions, most of which involve giving advice to clients. Some examples of professionals who might want this type of protection include:
Even though this is a fairly common insurance, it’s still a specialized form of coverage as policies are typically adapted to suit the particular needs of professionals in a specific field. For example, policies designed for lawyers are often a bit different from those intended for insurance agents. Each will likely have its own terms, conditions, coverages and exclusions that are crafted with the respective line of work in mind.
Because policies tend to be specialized and adapted for specific fields, Massachusetts professionals should make sure they end up with a policy that’s appropriate for their work. An insurance agent who specializes in E&O insurance will be able to guide professionals toward policy options that are tailored to their needs.
Medical malpractice is another form of professional liability insurance, and it may be the most well-known type of coverage within this broad category. Medical malpractice policies aren’t the same as E&O policies, and the two shouldn’t be confused with each other. Malpractice policies are normally used to protect medical professionals, while E&O policies tend to be designed more for professionals who give advice in other disciplines.
Exactly what incidents an errors & omissions policy covers are determined by that policy’s documentation, but there are many incidents that a policy might protect against. Depending on its terms and conditions, a policy may offer protection in the following situations:
An insurance agent who understands these policies will be able to explain precisely what falls within a particular policy’s protections.
For help selecting errors & omissions insurance that’s tailored to your unique needs, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents are able to show you policy options from several insurers in Massachusetts, and they have the expertise necessary to help you choose the best available option.