What E&O Insurance Doesn’t Cover

Errors and omissions insurance in California

Errors and omissions insurance in California is often referred to as professional liability or malpractice insurance. Typically, E&O insurance protects your business against professional errors, whether real or perceived. If you provide a service for a fee, you should consider E&O insurance to protect your organization from having to pay for the costs associated with a legal defense.

You should also know what E&O insurance typically won’t cover. E&O insurance is for mistakes and errors made in the general practice of your professional services. If you commit illegal acts or intentional wrongdoing, this insurance usually will not cover your loss.

E&O insurance typically won’t cover bodily injuries or property damage in your own building, whether an employee or customer is hurt. A general liability policy will probably cover customer’s injuries, while your worker’s compensation insurance will probably cover the expenses of an employee injury. Your E&O insurance usually doesn’t cover property damage, either.

Generally, errors and omissions insurance in California helps pay lawyer fees, court costs and administrative costs if you are sued for your professional services. The exact breakdown of coverage depends on your policy and how it is written. It can also cover settlements and judgments against your business. No matter how careful you are, you may still make a mistake that costs your client money. E&O insurance can be peace of mind against that risk.


Insurance Risk Advisors