E&O Insurance: Who It Helps and How It Works

Sharing your expertise on behalf of your business or an organization you volunteer with is an exciting and meaningful way to make an impact in your company or community.

But in some instances, doing so could leave you open to the possibility of being accused of negligence or inadequate work. In situations where damage has allegedly resulted because of something you created on someone’s behalf or advised on, a lawsuit could arise and cause you quite a bit of stress, time, and money.

While there is no insurance policy that can help you alleviate the time and energy spent defending yourself in a lawsuit of this nature, there is a type of coverage that can help with the expense.

Errors & Omissions Insurance, commonly known as E&O insurance, is a form of professional liability insurance designed to cover the legal costs and most (if not all) of the settlement associated with a lawsuit. Whether an E&O policy will cover the entire settlement will depend on the limits of the policy.


How E&O Insurance Works


As we all know, lawsuits occur with frequency in nearly every industry – but naturally, there are some that are more vulnerable to this possibility than others. Sadly, it doesn’t matter whether the claims brought about in a lawsuit end up being proved valid or not. All parties involved must be prepared to fight that suit and the claims made against them.  In some cases, the expense just to hire an attorney to defend your suit can be the most expensive part of it.

It is for this reason that professionals who have a lot of client or public interaction should consider making E&O coverage part of their insurance package.

For example, a marketing professional that handles social media responsibilities for their clients runs the risk of being accused of a variety of claims. Anything from sharing dishonest information to using defamatory language, to creating something that infringes on the copyright or trademark of another entity, can create a larger issue than simply needing to remove a post.

Should that marketing professional have suit brought against them, the costs associated with their defense could be disastrous if they have to pay for them out of pocket. E&O insurance will financially protect the marketing professional from handling these significant costs on their own.


Who Should Have E&O?

  • Attorneys
  • Accountants
  • Counselors/Therapists
  • Medical Professionals
  • Insurance Agents
  • Marketing Professionals
  • Public Relations Reps
  • Information Technology Professionals
  • Property Managers
  • Members of a Board (non-profit and for-profit organizations)
  • And the list goes on…


If you would like to learn more about E&O Insurance and how it can protect and benefit you, please reach out to our team at J. Hoffman Insurance at 845-239-4787 or Jason@jhoffmaninsurance.com.