Errors and Omissions/Professional Liability Insurance

Errors and Omissions (“E&O”) or professional liability insurance protects businesses and individuals from claims arising out of the performance of professional services.  The most commonly insured professionals include doctors, attorneys, accountants, engineers, and architects.  Most E&O policies cover judgments, settlements, and defense costs incurred in connection with a claim of negligence, malpractice, or similar conduct.   The cost of legal fees alone can become a crippling expense, even when the allegations against the insured professional are completely without merit.  It is, therefore, critically important for any provider of professional services to have adequate E&O/professional liability coverage in place.

When applying for E&O coverage, professionals should be mindful of how they describe the professional services they provide because many policies will limit the scope of coverage according to the description provided in the insured’s application.  Professionals should also be careful to fully respond to questions about prior claims or potential claims, as insurance companies will seek to avoid coverage where they can show that an insured failed to disclose a known prior or potential claim at the time of the policy’s inception.

The attorneys at Franklin | Soto LLP have experience analyzing and litigating various E&O coverage issues.  Contact us at 619.872.2520 to discuss your E&O coverage claim.