What is an Errors and Omissions (E&O) policy?

What is an Errors and Omissions (E&O) policy?

• A. Auto liability insurance.
• B. Homeowners insurance.
• C. Professional liability insurance for mistakes or negligence in professional services.
• D. Flood insurance.

Answer: (C)

Errors and Omissions insurance is a form of professional liability coverage. It protects professionals against claims that their mistakes, negligence, or failure to perform their duties in the course of providing services caused a client’s financial losses. The policy helps pay defense costs and any settlements or judgments that arise from such claims. This type of coverage is specifically for those who offer expert services or advice, like consultants, accountants, engineers, or attorneys. It isn’t about vehicle liability, home protection, or flood risks, so it doesn’t apply to auto liability, homeowners insurance, or flood insurance.

Errors and Omissions insurance is a form of professional liability coverage. It protects professionals against claims that their mistakes, negligence, or failure to perform their duties in the course of providing services caused a client’s financial losses. The policy helps pay defense costs and any settlements or judgments that arise from such claims. This type of coverage is specifically for those who offer expert services or advice, like consultants, accountants, engineers, or attorneys. It isn’t about vehicle liability, home protection, or flood risks, so it doesn’t apply to auto liability, homeowners insurance, or flood insurance.