What is the difference between Professional Liability and E&O Insurance?
Apr 25, 2021
Is there any difference between Professional Liability and E&O?
If you are starting a business, we understand that there are so many things you have to think about. One of the items on your checklist is getting your business insured. Whatever line of work you may be in, your business is always exposed to a unique set of risks. Getting insured against these risks helps you get peace of mind and allows you to focus more of your time and energy on what is important for your business. That being said, there are many types of insurance that you can get for your business, and it's important to know what insurance solution will work best for you. One type of insurance to consider is Professional Liability Insurance, which is also sometimes called E&O Insurance (Errors and Omissions). In this blog, we'll explain what Professional Liability Insurance is, why it's important for your business, and even explain if there is a difference between Professional Liability Insurance and Errors and Omissions Insurance.
What is Professional Liability?
If you are operating a business that provides professional services, such as consulting or accounting, you need Professional Liability Insurance. Professional Liability Insurance protects you against negligence in the services you provide. For example, if you are operating a business that provides accounting services and you make a mistake in your calculations that affects the client financially, Professional Liability Insurance will provide you with coverage in case the client decides to sue you. Other instances in which Professional Liability Insurance can protect you include: substandard or incomplete work, missed deadlines, or breach of contracts.
Your Professional Liability coverage will cover all costs related to the claim including but not limited to: attorney fees, court costs, settlements or judgements.
What's the Difference Between Professional Liability and E&O?
There is no difference between the two. Currently, Professional Liability and E&O are used interchangeably. The only difference is the kind of businesses or professions they are used for.
Professional Liability is typically used for policies covering engineers, consultants and architects while E&O (Errors and Omissions) is often used for policies covering real estate, tech and accounting professionals. In medical and legal professions, Professional Liability is also sometimes called Malpractice Insurance.
We answered another similar question, "What is the Difference Between Commercial General Liability and Professional Liability (E&O)?"
We know that finding a business insurance solution can feel confusing, especially with all the jargon and acronyms being used by insurance companies. Don’t worry - we're here to help! Every business is unique; we believe business insurance solutions should equally be individualized and unique to your business. Our team of experts at Foxquilt can help review your business and get you a customized quote, suited to your business needs. Get started on your online quote today!
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