Legal Definitions - errors and omissions

Errors and omissions is a type of liability insurance that provides coverage to professionals against damage caused by their mistakes or omissions while providing professional services. This insurance is also known as E&O insurance.

Errors and omissions insurance only covers unintentional errors and omissions resulting from negligence. It does not cover intentional wrongs.

For example, a lawyer may carry errors and omissions insurance as part of their malpractice coverage. If the lawyer makes a mistake or omission while providing legal services to a client, and the client suffers damages as a result, the insurance can provide coverage for the lawyer's liability.

Another example could be a financial advisor who provides investment advice to a client. If the advisor makes a mistake or omission that results in financial losses for the client, the errors and omissions insurance can provide coverage for the advisor's liability.

These examples illustrate how errors and omissions insurance can protect professionals from liability for unintentional mistakes or omissions while providing professional services.