Errors And Omissions — Insurance Claims Definition
Liability
Professional liability coverage for negligence, mistakes, or failure to perform professional duties.
E&O is the common name for professional liability for agents, brokers, consultants, and similar roles. It covers defense and indemnity for alleged wrongful acts in professional capacity.
Retroactive dates and prior acts coverage matter for career changes and firm mergers.
Examples
An insurance agent fails to bind requested flood coverage before a storm; the client sues for the uncovered flood loss.
Common Mistakes
Thinking a corporate veil eliminates need for individual E&O for owners who personally perform professional work.
