Errors and Omissions (E&O) Insurance, also referred to as Professional Liability Insurance, provides a safety net for law firms. This insurance policy helps protect the assets of your law firm against claims of inaccurate advice, misrepresentation, and negligence. Basically, an E&O policy will provide a form of financial relief should a costly error or mistake be made.
E&O Insurance vs. General Liability Insurance
Errors and Omissions Insurance and General Liability Insurance may seem similar but they are actually unique. A General Liability Policy provides financial protection for claims made regarding property damage or personal injury. On the other hand, a typical Professional Liability Policy offers protection against monetary losses for things such as reputation, data breaches, intellectual property infringement, and other forms of intangible property.
Disputes are usually pricey for any law firm. Even when the disputes are resolved relatively quickly, the costs can run into thousand dollars. If the dispute drags for months, the expenses could be severe for your business.
An E&O policy will provide relief to your law firm by covering expenses such as: