Professionals may be held financially liable if they give clients errant advice that results in substantial losses. Errors and omissions insurance may help Texas professionals shield themselves from this type of risk.
Errors and omissions insurance is specialized professional liability insurance for professionals. The insurance will usually help pay court fees, attorney fees and settlements from covered claims.
E&O insurance is primarily purchased by professionals who regularly provide advice. Any Texas professional who gives advice (as opposed to applying a skill) might want this insurance.
The following are a few examples of professionals who primarily offer advice, and might thus want an E&O policy:
Medical providers are a good example of professionals who need different professional liability insurance. Although doctors advise patients on treatment options, they also apply specialized skills learned during medical school and residency. A medical malpractice policy will likely protect against these risks much better than a standard E&O policy would.
Professionals who are unsure whether they should purchase E&O insurance or another professional liability insurance can get advice from a knowledgeable insurance agent. An agent who specializes in E&O insurance will be able to recommend the most suitable type of professional liability policy, whether that’s an E&O policy or something else.
E&O policies typically protect against a variety of mistakes that professionals could make. For instance, a policy with the right terms may offer coverage in scenarios such as:
Exactly what mistakes a particular E&O policy protects against depends on the terms and conditions of a policy, and many policies have specialized terms for specific fields of work. An experienced insurance agent can help professionals find a policy that’s specialized for their particular field.
A lot of E&O policies are underwritten as “claims made” policies. Claims made policies generally determine coverage according to when a claim is filed, as opposed to when an incident allegedly occurred. Basing coverage on when a claim is filed might make sense if the exact timing of an incident is difficult to determine.
When reviewing the coverage period of a claims made policy, professionals should pay special attention to two details:
For help purchasing errors and omissions insurance in Texas, contact the independent insurance agents at Wise Insurance Group. Our agents will work closely to identify the types of mistakes you want to be covered, and then we’ll help you find a policy that provides robust protections for many of the mistakes you could make.