Please read our important COVID-19 information COVID-19 Updates
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
JMG Insurance Agency Logo

JMG Insurance Agency

Personal, Business & Specialty Insurance Brokerage

Our Locations 1-844-304-7332
  • Personal Insurance
    • Auto Insurance
    • ATV Insurance
    • Boat & Yacht Insurance
    • Motorcycle Insurance
    • RV Insurance
    • Snowmobile Insurance
    • Flood Insurance
    • Health Insurance
    • Homeowners Insurance
    • Life Insurance
    • Rental Property Insurance
    • Renters Insurance
    • Umbrella Insurance
  • Business Insurance
    • Business Owners Policy
    • Auto Insurance
    • Flood Insurance
    • Errors & Omissions Insurance
    • General Liability Insurance
    • Group Benefits Plans
    • Life & Health Insurance
    • Workers Compensation Insurance
  • Specialty Insurance
    • Car Wash Insurance
    • Commercial Marine Insurance
    • Construction Insurance
    • Contractors Insurance
    • Daycare Insurance
    • Drone Insurance
    • Farm & Ranch Insurance
    • Garage Insurance
    • Habitational Insurance
    • Limo Insurance
    • Police Professional Liability Insurance
    • Public Transportation Insurance
    • Rage Room Insurance
    • Restaurant Insurance
    • School Accident Insurance
    • Special Event Insurance
    • Sports Insurance
    • Woodworkers Insurance
  • Surety
  • Certificates
    • CSR 24 Login
    • High Volume Certificate User
    • Indemnity Agreements
  • Claims
    • First Notice of Claims
  • About
    • Blog
    • Community
    • Managerial Team
    • Our Companies
      • Baio Insurance
      • Frazao Insurance
    • Our Partners
    • Testimonials
  • Contact
  • Login

What Does E&O Insurance Cover?

Request a Quote! An insurance quote does not impact your credit score.

Request a Quote

April 2, 2020 by JMG Insurance Agency

Barista helping irritated customer As an expert in your field, you probably do not give much thought to receiving backlash from unhappy customers. Unfortunately, this can sometimes happen when you least expect it. Errors and omissions (E&O) insurance is designed to protect professionals in the event that they are sued for mistakes or omissions in their services. E&O insurance is commonly referred to as professional liability insurance as it has the ability to cover professionals like accountants, lawyers, IT consultants, property managers, appraisers and title agents.

So, what does E&O insurance cover exactly? While exact coverage terms can differ from policy to policy, errors and omissions insurance typically covers damages from claims of negligent actions or inadequate work that may affect your company or staff.

Liability Coverage

Errors and omissions insurance covers a wide range of liabilities that your business might face during daily operations. Work errors and oversights are fairly common but could result in lost money for a client. That client may then try to recover their losses by filing a legal claim against your business.

E&O insurance also protects your business if a client files a legal claim due to undelivered services. Leaving a client’s work unfinished can disrupt their personal or business plans, and if they are unwilling to work it out, you could end up getting sued. Other common liabilities that a company may face that could result in a legal claim include accusations of negligence and missed deadlines. Both of these events could delay or disrupt a client’s plans, resulting in lost revenue or growth opportunities.

Types of Employees Included

Now that you know what types of incidents are covered by E&O insurance, you may be wondering who is covered. First, as the owner of the company you operate, you will be covered by all claims that arise from your services. In addition, your employees will be covered by your policy.

Sometimes, you may find it necessary to hire outside subcontractors to assist in completing a project or to perform some other type of job. You will be glad to know that most E&O insurance policies also cover subcontractors who cause financial loss to a customer. However, this is not the case with every policy, so be sure to read the terms of your plan carefully to see who is covered and who is not.

Criminal Cases Not Covered

Law books and scale on deskWhile E&O insurance can be quite valuable under the right circumstances, it is not a fix-all for every situation. There are certain criminal cases not covered by most standard errors and omissions insurance policies. For example, most policies do not cover dishonest, malicious, illegal or criminal acts, such as the intentional violation of the law.

An E&O insurance policy will also not cover copyright, trademark or patent infringement, libel or slander, illegal discrimination, pollution, violation of any securities act, insolvency or bodily harm to any person. You will also find that your policy does not cover criminal cases relating to imprisonment, humiliation, eviction, wrongful entry, malicious prosecution and invasion of privacy.

When obtaining an E&O insurance policy, it is important to ensure that the services you provide match up with the name in the policy. Most insurance companies will not provide coverage for services that you might provide under another business name that is not named in your insurance policy.

Client Coverage

If you own or operate a small business, you may be considering purchasing errors and omissions insurance as an extra layer of protection for your company. Professionals in nearly all industries can benefit from E&O insurance, including those in the architecture, beauty, consulting, fitness, marketing, retail, property, therapy, health and home services fields. Nearly any business that provides a service and could suffer from a customer-initiated lawsuit should have E&O insurance.

With errors and omissions insurance, you will remain protected from a range of costs. This typically includes lawyer fees, administrative and court fees, defense costs, judgements and settlements. Your insurance policy may also cover expenses relating to copyright infringement, claims for past services provided, negligence and independent contractors and temporary staff.

Request More Info from JMG

Insurance agent holding e&o insurance contractE&O policies can range from one insurance company to the next, but most have similar features. Know that a majority of errors and omissions insurance policies are claims-made, meaning they cover claims that are made against insured parties during the policy’s term. Sometimes an insurance policy will place limits on coverage for claims made during the policy so be sure to review your policy carefully. Also, read through the insuring agreement, which will summarize your coverage in easy-to-understand terms. If you have any questions or concerns about your policy, be sure to ask your insurance carrier.

Errors and omissions insurance has helped countless businesses protect themselves from financial ruin. To learn more about E&O insurance or to acquire a policy for your small business, contact the experienced insurance agents at John M. Glover.

Primary Sidebar

Get Started!

Loading

Your request has been submitted

Thank you for your submission. We will contact you shortly.

Resetting in second(s)

Server Side Error

We faced problems while connecting to the server or receiving data from the server. Please wait for a few seconds and try again.

If the problem persists, then check your internet connectivity. If all other sites open fine, then please contact the administrator of this website with the following information.

TextStatus: undefined
HTTP Error: undefined

Please hold while we process your request.
Error

Some error has occured.

Footer

JMG Insurance Agency Logo

The JMG Insurance Agency has been serving the insurance needs of our clients in Connecticut, New York, New Jersey, Massachusetts, and Hawaii since 1916.

  • About Us
  • Blog
  • Careers
  • Contact Us
  • Our Locations
JMG Insurance Agency 29 Haviland Street Norwalk, Connecticut 06854 1-844-304-7332 1-203-857-7848

© 2021 JMG Insurance Agency · Powered by 321 Web Marketing · Website Privacy Policy