Errors and Omissions Insurance (E&O)
Definition of 'Errors and Omissions Insurance (E&O)'
E&O insurance is important for professionals because it can help to protect them from costly lawsuits. If a client sues a professional for an error they made, the E&O insurance can help to pay for the legal fees and damages.
E&O insurance is typically purchased by professionals who work in fields where mistakes can have a significant financial impact, such as law, accounting, and medicine. The cost of E&O insurance varies depending on the profession, the level of coverage, and the size of the deductible.
There are a few things to keep in mind when shopping for E&O insurance. First, it is important to make sure that the policy covers the specific types of errors that you are most likely to make. Second, you should consider the level of coverage that you need. Third, you should compare the rates of different insurers before making a decision.
E&O insurance is an important way to protect yourself from financial losses resulting from mistakes you make in your work. By understanding what E&O insurance is and how it works, you can make sure that you are adequately protected.
Here are some additional details about E&O insurance:
* E&O insurance is typically purchased on an annual basis.
* The cost of E&O insurance is based on a number of factors, including the profession, the level of coverage, and the size of the deductible.
* E&O insurance can be purchased through a variety of insurance companies.
* It is important to read the E&O insurance policy carefully before purchasing it to make sure that you understand what is covered and what is not covered.
If you are a professional who is concerned about protecting yourself from financial losses resulting from mistakes you make in your work, E&O insurance is an important consideration. By understanding what E&O insurance is and how it works, you can make sure that you are adequately protected.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.