E&O Policy Offers Protection But Not Everything Is Covered

Mistakes happen – and when they do, an E&O insurance claim can result if you are deemed responsible for causing financial loss to someone due to your negligence, errors, omissions, or otherwise failure to provide the professional services that you were hired to perform. Your professional insurance agent can provide you with guidance on the entire suite of business protection that you need as well as access to coverage from first-rate insurers with high ratings for their claims-paying ability, which attests to these firms’ safety and security that has been proven over many years. These companies are well-known for paying covered losses for their customers. However, you should be aware of some incidents that are very commonly excluded from this particular coverage.

What E&O often excludes

  • Acts that are deemed dishonest, malicious, criminal, or illegal, including intentionally violating a law, regulation, a statute or an ordinance
  • Providing services while representing another company, group, or charity that is not named as a covered organization in your policy
  • Causing damage to property, or loss of use that stems from such damage
  • Instances of slander or libel
  • Illegal discrimination against someone
  • Causing pollution
  • Punitive fines, damages, or penalties that you are deemed responsible for
  • Bankruptcy
  • Failing to secure, provide, or maintain financing or other types of financial means
  • Acts of humiliation, wrongful entry, imprisonment, eviction, invasion of privacy, or claims of malicious prosecution
  • Violating any securities act
  • Causing bodily harm to someone, including illness or death
  • Infringing on others’ copyright, patent, or trademark protections

The good news is that some of these exclusions can be protected with other types of coverage. Knowing exactly which policies cover what risks is an important job best left to the experience of your professional insurance agent. He or she will help you find the balance between acknowledged risks, finding coverage that addresses an appropriate amount of those perils, and obtaining coverage with premiums and deductibles that will make sense for your company’s budget. Don’t make the mistake of not obtaining the advice of a professional; call your agent today to learn more about insuring for the liability you face for the mistakes you may make.