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E&O
(Errors and Omissions Insurance)
E&O insurance (also called Professional Liability Insurance) protects businesses against claims of inadequate work or negligent professional services. Essential for service providers like consultants, accountants, and tech firms, the U.S. E&O market exceeds $15 billion annually.
Coverage includes legal defense costs and damages awarded in lawsuits alleging financial harm due to mistakes, missed deadlines, or failure to deliver promised results. Unlike GL insurance, E&O covers economic losses rather than physical injuries. Premiums depend on profession (higher for medical and legal fields), with typical policies covering $1M per claim and $3M aggregate annually. Many client contracts now require proof of E&O coverage before engagement.
Coverage includes legal defense costs and damages awarded in lawsuits alleging financial harm due to mistakes, missed deadlines, or failure to deliver promised results. Unlike GL insurance, E&O covers economic losses rather than physical injuries. Premiums depend on profession (higher for medical and legal fields), with typical policies covering $1M per claim and $3M aggregate annually. Many client contracts now require proof of E&O coverage before engagement.