An overview of errors and omissions coverage

Errors and omissions insurance coverage, or E&O coverage, provides protection for professionals if they get sued in connection with how they practiced their profession. E&O coverage will typically cover the cost of providing a legal defense. Up to the policy limits and subject to the policy’s exclusions, terms and conditions, the E&O insurance carrier will also pay liability claims against a professional. In some professions, E&O is commonly referred to by a different name. For example, doctors and nurses are probably used to hearing this type of insurance called medical malpractice coverage. Basically, anyone who is giving professional advice and representation can benefit from E&O coverage. Those who may need this sort of coverage range from lawyers and financial professionals to wedding planners and personal trainers. Frequently, state and federal laws or regulations or the professional’s customers, vendors, or lenders will require this coverage. Here are some examples of what sort of claims E&O policies might cover: Incorrect or inadequate advice. Failure to perform services. Simple mistakes like missing a deadline or forgetting to submit a form. Performing services incorrectly. The E&O policy will not cover criminal or fraudulent acts. To be clear, this insurance also does not cover items like premises liability, workers’ compensation ore employment-related claims. A professional practice may purchase separate policies for these sorts of risks. Defending the livelihood, reputation of a professional requires legal skill If a professional with E&O coverage in the Las Vegas area gets sued for professional malpractice, they should review their policy and contact their insurance carrier and agent. In a covered claim, the insurance company has an obligation to defend their insured against a lawsuit. After being told about the suit, the carrier will arrange for an attorney to provide that defense. Doing a thorough investigation into the facts behind the claim and preparing a legal defense are important steps in protecting both the professional’s property and professional reputation.The post An overview of errors and omissions coverage first appeared on Keating Law Group PC.