What is the definition of Errors and Omissions Coverage (E&O)?
Errors and Omissions Coverage protects the policyholder against losses or liability due to mistakes (acts of negligence or omissions) during the course of his practicing his profession.
Professionals and agencies (as well as their agents) may have to face liability suits when they make representation of their clients. The insurance company who covers them will be the one paying for these. Examples of professionals who need the Errors and Omissions coverage are real estate brokers and financial institutions that originate mortgage loans for reselling in the secondary mortgage market.
This does not protect against fraud or gross negligence. This includes resulting judgments made against the insured, legal defense costs and other related expenses up to the specified limits of the policy.
| Not a bit | Very useful |
- Escrow Account
- Excess and Surplus Lines
- Excess of Loss Reinsurance
- Exclusion
- Exclusive Agent
- Exclusive Remedy
- Expense Ratio
- Experience
- Exposure
- Extended Coverage
- Equity Indexed Annuity
- Equity
- Environmental Impairment Liability Coverage
- Endowment Insurance
- Endorsement
- Employment Practices Liability Coverage
- Employer’s Liability
- Employee Retirement Income Security Act (ERISA)
- Employee Dishonesty Coverage
- Elimination Period