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Errors and Omissions

What Is Errors and Omissions Insurance?

Errors and omissions insurance, or professional liability insurance, is a type of coverage that protects you against suits and claims arising from your negligence, error, or omission in the professional services you provide.

Instead of covering your physical products, an errors and omissions insurance policy covers intellectual work, like if you teach a cooking class or run a seminar on how to start a food truck business. If a customer is unhappy with your work, they could take legal action. This coverage protects you.

Errors and Omissions definition.

What Are Other Names for Errors and Omissions Insurance?

Errors and omissions insurance is sometimes called “E&O” for short.  Many policies also refer to it as “professional liability insurance.” 

What Does Errors and Omissions Insurance Cover?

E&O insurance protects businesses from financial losses and claims arising from mistakes, errors, negligence, or omissions related to its professional services.

For example, a client may file a claim against an E&O policy for financial harm due to the advice—or lack thereof—given by the policyholder.

Let’s say you teach a cooking class where the focus is on cooking with as few dishes and pans as possible for minimal clean-up. During the class, you neglect to mention that students shouldn’t prepare their fresh veggies on the same cutting board that they used for raw fish earlier in the recipe. 

One of your students goes home, makes this dish following your instructions, and gets food poisoning because they used the same cutting board for everything. If this student decides to sue you for damages, errors and omissions insurance could cover the cost of the claim.

What Does Errors and Omissions Insurance Not Cover?

Most E&O policies will not cover:

  • Intentional misconduct
  • Bodily injury 
  • Criminal proceedings
  • Employment practices liability
  • Property damage
  • Contractual liability
  • Punitive damages
  • Fines and penalties
  • Unapproved activities

 

Because errors and omissions insurance varies, it’s very important to review your policy to understand the specific coverage, exclusions, and limitations.

Who Needs Errors and Omissions Insurance?

Anyone who is in the business of providing counsel, advice, or guidance services needs an errors and omissions policy to protect themselves from costly claims.

How Much Is Errors and Omissions Insurance?

You can get E&O coverage—or as we call it at FLIP, professional liability insurance—for just $10.42/month with the following limits:

  • $100,000 Each Occurrence
  • $200,000 Aggregate

How Do I Get Errors and Omissions Coverage?

Adding professional liability insurance to your FLIP policy is easy!

While filling out your application, you’ll have the chance to add professional liability to your policy. If you want this coverage, select “Add” and finish checking out!