Errors and omissions (E&O) insurance is a crucial safeguard for many businesses and independent professionals who want to financially protect themselves from the consequences of mistakes or other issues involving their work. Regardless of your company’s commitment to customer satisfaction and skill or experience levels, it may eventually have to navigate the aftermath of these scenarios. Appropriate E&O coverage can make all the difference.
What Is E&O Insurance? 
E&O insurance, also known as professional liability insurance, can help cover losses and expenses if a client alleges that your business’s subpar services are to blame for their own financial damages. This type of coverage is especially important for companies and professionals that provide trusted advice or services, such as consultants, real estate agents, marketing firms, health care providers and accountants.
Key Components of an E&O Policy
Understanding your E&O policy means knowing what it covers. In many cases, your policy can help manage the financial implications of the following accusations:
- Professional mistakes
- Inaccurate advice
- Negligence
- Oversights
- Omissions
- Misrepresentations
- Breaches of contract
- Missed deadlines
In response to such claims, your policy may help pay for:
- Legal representation
- Expert witness fees
- Settlements
- Court-ordered judgments
Why E&O Insurance Matters
Even if you’re eventually absolved from blame, lacking E&O insurance could leave you facing extensive out-of-pocket costs. Additionally, not having access to the necessary financial resources could jeopardize your ability to set the record straight, potentially inflicting significant reputational harm. In many cases, clients and customers may require proof that your business has E&O coverage before agreeing to work with you. As such, failing to maintain a suitable policy could adversely impact your business’s growth and potential.
How Our Team Can Help
At AAAA Insurance, we work closely with professionals and business owners in and around Houston to assess their specific risks and recommend E&O policies that fit their needs.
Contact us today to learn more or compare personalized E&O insurance quotes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.