Allard LTD. CPA & Financial Services

(952) 895-0895

Insurance Read Time: 2 min

Errors and Omissions Insurance

Errors and Omissions (E&O) insurance has many names. For some healthcare professionals, it's called malpractice insurance. For lawyers, it may be called professional liability insurance.

Whatever name it goes by, E&O insurance is designed to protect you or your company from potential financial damages that may arise from a client holding you responsible for a service you provided that did not meet an expected or promised outcome. Some E&O policies are designed to protect you from claims of a failure to provide a service. E&O covers risks that your general liability insurance policy probably does not.¹

Most E&O policies cover judgments, settlements, and defense costs associated with any civil suits initiated by a dissatisfied client.

Who Should Consider?

While E&O insurance is commonly associated with professionals such as doctors, lawyers, and financial professionals, anyone in the business of providing a service for a fee should consider obtaining coverage. Whatever your profession, try to imagine your potential liability if the work performed by you or your employees was not properly done.

Most errors and omissions insurance can be structured to meet the specific needs of your business. For example, a wedding planner has a different risk exposure than an accountant, necessitating a different form of coverage.

1. The information in this material is not intended as legal advice. Please consult a legal professional for specific information regarding your individual situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Charitable Giving: Smart from the Heart

Charitable Giving: Smart from the Heart

Do you have causes that you want to support with donations?

U.S. Personal Savings Rate

U.S. Personal Savings Rate

What can be learned from the savings rate?

Stay Safe with a B.O.P. At Your Back

Stay Safe with a B.O.P. At Your Back

Learn about the advantages of Business Owner Policies with this highly educational and fun animated video.

 

Have A Question About This Topic?







Thank you! Oops!

Financial Aid for Students 101

Help your college-bound child explore scholarships, grants, and more with this article on paying for higher education.

Medicare At 65+

65 or older? It may be time to enroll in Medicare. Read to learn if you’re eligible.

Fixed or Variable Mortgage, Which Should You Pick?

When selecting a mortgage, one of the most critical choices is between a fixed or variable interest-rate mortgage.

View all articles

Home Mortgage Deduction

Use this calculator to assess the potential benefits of a home mortgage deduction.

Saving for College

This calculator can help you estimate how much you should be saving for college.

What Is My Risk Tolerance?

This questionnaire will help determine your tolerance for investment risk.

View all calculators

Where Is the Market Headed?

We all know the stock market can be unpredictable. We all want to know, “What’s next for the financial markets?”

Should You Tap Retirement Savings to Fund College?

There are three things to consider before dipping into retirement savings to pay for college.

When Special Care Is Needed: The Special Needs Trust

A special needs trust helps care for a special needs child when you’re gone.

View all videos