What is errors and omissions insurance?
For Texas professionals who provide advice or services, the risk of financial liability due to inadvertent mistakes or oversights is a genuine concern. This is where errors and omissions insurance comes in.
Errors and omissions insurance is specialized liability insurance for professionals. It typically covers legal expenses associated with claims that are tied to professional mistakes or oversight.
Who in Texas might need E&O insurance?
Most Texas professionals who give advice can benefit from E&O insurance’s protections. The insurance is broadly useful to professionals with specialized knowledge. For instance, all of the following might want to purchase a policy:
- Legal Professionals: Attorneys, paralegals, legal admins
- Financial Professionals: Financial advisors, retirement planners
- Real Estate Professionals: Real estate brokers, agents
- Construction Professionals: Architects, engineers
- Duty-Bound Professionals: Fiduciaries, trustees
Additionally, contractors and tradespeople might want coverage if they regularly give customers advice. E&O insurance typically doesn’t protect against errors in physical work, but it could protect against damage that results from bad recommendations or misdiagnosed problems.
In cases where professionals both give advice and apply a specific skill set, a different type of professional liability insurance may be more appropriate. For instance, medical professionals usually require medical malpractice insurance rather than an E&O policy.
If professionals are uncertain about whether E&O insurance or another type of professional liability coverage is right for them, they should work with an experienced insurance agent. An agent who’s familiar with E&O insurance and other professional liability coverages can help determine the most suitable policy type for a specific profession.