Who requires E&O insurance?
Errors and omissions insurance, or E&O insurance, is typically for professionals who provide advice outside the legal and medical fields. This could include financial advisors, real estate professionals, and even contractors, particularly when their work involves offering advice.
Who requires D&O insurance?
Directors and officers insurance, or D&O insurance, is typically for individuals in leadership positions. Board members and executives might benefit from this insurance, which often provides protection in situations where a decision by a leader could adversely impact their organization. Not all decisions are covered, but many are.
Who pays the premiums for professional liability coverage?
Professional liability protection is frequently provided to traditional employees through a policy purchased by their employer. However, such coverage normally applies only when professionals are working on behalf of the employer, and may not extend to volunteer work or side projects.
Self-employed professionals often need to purchase their own insurance, as they may not be covered by the hiring business’s policy. So too might those who do side work or volunteer work on their own.