If you offer advisory services for a fee, Errors and Omissions Insurance may be essential for you. While you always aim to provide accurate advice and avoid mistakes, errors can happen to anyone.
Errors and Omissions Insurance, also known as E&O Insurance, is a type of professional liability insurance that safeguards professionals from claims of financial loss or misconduct stemming from the services they provide. This coverage protects against accusations of negligence, failure to deliver services as agreed, and missing deadlines.
In essence, Errors and Omissions Insurance provides a safety net in the event that a client sues you and wins a judgment resulting from your actions.
For many professions, having Errors and Omissions Insurance is mandatory. Even if not required by law, having this insurance is a wise decision to protect yourself and your business.