Errors and Omissions Insurance

Knowledge Center


Description of Errors and Omissions Insurance. Explanation.


Errors and Omissions Insurance

What is Errors and Omissions Insurance? Description

Errors and Omissions Insurance is a form of business insurance which protects companies and individuals from bearing the full cost of (defending against) a claim by a client who holds the firm responsible for an (advisory) service that was provided (or was failed to provide).

Errors and omissions insurance is an insurance contract quite similar to the Professional Liability Insurance, although the term E&O is typically used for advice-giving consultants, brokers and lawyers, real estate agents, accountants and insurance agents. For medical professionals, an E&O insurance is often called "Malpractice Insurance".


While general liability insurance is primarily focused on property damage or bodily injury. An errors and omissions insurance protects you if a client claims that your services caused them to suffer a financial loss.


Coverage of Errors and Omissions Insurance

  • Most E&O policies cover judgments, settlements and defense costs. Even if allegations are ultimately found to be groundless, a large amount of money may be required for the lawsuit defense.
  • E&O insurance does normally not cover intentional, fraudulent or illegal activities or in most policies, punitive damages.

Cost of Errors and Omissions Insurance. Premiums


E&O premiums are based on several factors:

  • Type of products / services provided

  • Country / state where services are provided

  • Annual revenues

  • Number of professionals / representatives providing services

  • Loss/claims history

  • Type of policy.

More and more countries are regulating errors and omissions insurance as mandatory for most professional categories.

As a result, insurance companies are stipulating and negotiating a contract with an entire category of professionals, with the advantages to negotiate large volumes for the company while offering better and tailored conditions and competitive prices for each associated professional.


It’s important to note that almost all Errors and Omissions insurance policies are sold on a “claims-made” basis. This means that the insurance only covers work performed while the policy is in force, and for claims actually filed during the term of the policy. If you cancel your E and O insurance policy without arranging for an extended reporting period, your coverage ends, and any claims submitted after the cancellation will not be covered, even though the work was performed while the policy was in effect.

Special Interest Group - Errors and Omissions Insurance

Special Interest Group (1 members)

Forum - Errors and Omissions Insurance  

In the forum section you will find recent discussions within this knowledge area.

Best Practices - Errors and Omissions Insurance

In the best practices section you will find the best forum discussions within this knowledge area.

Expert Tips - Errors and Omissions Insurance

In the expert tips section you will find advices from experts within this knowledge area.

Resources - Errors and Omissions Insurance

In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.


News about Errors And Omissions Insurance


Videos about Errors And Omissions Insurance


Presentations about Errors And Omissions Insurance


Books about Errors And Omissions Insurance


More about Errors And Omissions Insurance


Special Interest Group Leader

You here? Sign up for free


Return to Management Hub: Change & Organization  |  Ethics & Responsibility  |  Finance & Investing  |  Human Resources

More on Management  |  Return to Management Dictionary  | 

This ends our Errors and Omissions Insurance summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.0 - Last updated: 16-6-2019. All names ™ of their owners.