Errors and Omissions insurance, commonly called E&O insurance, protects professionals from liabilities resulting from their negligent actions. Unlike a company that makes a tangible product that could physically injure a customer, professional negligence is more subtle.

Some examples might include:

• An accountant who carelessly misses deductions and his client has to pay extra taxes and penalties,
• A stock broker who recklessly pushes investments without making full disclosures to clients,
• An architect who creates designs without thought to code requirements and the client is hit with heavy change orders or fines.

Basically, any profession that, if they failed to perform their service to an expected level of skill, could cause their clients to suffer a loss, can benefit from E&O insurance.

Professions with the most vulnerability include:

Accountants handle the lifeblood of a business. A mistake or failure to act can have real dollars and cents ramifications for their clients.

Engineers are responsible for the structural integrity of everything from buildings to bridges to playground equipment. An engineer who fails to adhere to established design standards can not only cost their clients money, but also cause injuries.

Architects handle not only the infrastructure of a home or building, but also the design aesthetic. However, failure to attend to details, such as code requirements, restrictive covenants, signage regulations and historical standards, can saddle their clients with prohibitively expensive change orders and delays.

Attorneys E&O insurance goes by the name of malpractice coverage, but is fundamentally the same. A classic example of legal malpractice is an attorney who negligently fails to to file a case before the statute of limitations expires. If this happens, their client is forever barred from any type of recovery.

Event Planners create weddings and conventions that are talked about for years. However, when the conversation is about the missing decorations, the soggy frozen cake or the alternate site because the planner forgot to make reservations, then E&O insurance may be all that stands between the planner and financial ruin.

Any business that provides services for a fee can benefit from Errors & Omissions insurance. Call Insurance By Design at 972-499-3414 to make an appointment to review coverage options and determine whether E&O insurance is right for your business.