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Errors & Omissions (E&O) insurance indemnifies the insured for any loss sustained because of an error or oversight on his or her part.

Errors and omissions insurance is part of the professional liability insurance package that consulting firms typically purchase under a miscellaneous policy that is highly specific to their realm of services. Many home-based or smaller consultants operate without professional liability insurance because they either do not know about it or feel they cannot afford it.

Anytime you are providing services to clients and you could be held responsible for damages your clients' incur while following your advice, you have a variety of potential exposures. If you provide information to your clients that turns out to be inaccurate or incorrect and they rely on your information and spend money because of it, you could be liable for any expenses and any liability they incur because of the bad information you provided. Or, as another example, if you obtained some inside information and you disclosed it publicly, you could be sued for that. In addition, if you pass along information that you get from a service without proper permission, you could be in violation of copyright infringement laws.

We can help explain all of this in detail and customize it for your specific needs. Give us a call today.


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