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This article will answer your many queries about errors and omissions insurance, a type of insurance also referred to as professional liability insurance, malpractice insurance, and E&O insurance. Let’s start with the first question, that is, how is an E&O insurance defined? An E&O insurance is a kind of insurance that will protect a person or a corporation from lawsuits in the event he makes a mistake in whatever work he is doing or in whatever service he is dispensing. This insurance also protects the same person from omissions that his client thinks he committed whether intentionally or unintentionally. The workforce has thousands of professionals ranging from doctors, lawyers, accountants to engineers who continue to avail of this type of insurance, which brings us to the second question: who should get an E&O insurance? The answer is ANYONE who is in the business of providing a kind of service in exchange of a fee. Furthermore, the person has E&O exposure when he fails to deliver the promised service and this particular failure caused his client sleepless nights and some form of financial loss; and this could happen to anyone but mostly to medical practitioners whose patient died due to an error committed while performing the operation or a lawyer who promised a client victory but lost the case anyhow. These are the professionals who should consider getting a E&O insurance. Meanwhile, you might ask how E&O applies to small and large companies, which brings us to the third question: why do companies need a E&O insurance? Firms, corporation, and small and medium enterprises need an E&O insurance because there are certain liabilities that an insurance client could commit that may not be covered with a general liability policy such as errors the likes of shipping an entire clothing line to Europe instead of the United States where it should have been shipped in the first place. This mistake will not only cost the client additional freight charges because he has to have the items shipped again from Europe to its original destination but also the trust of the clothing line designer and manufacturer. They might not want to have their items shipped under your shipping agency ever again. Having one’s services covered with a E&O insurance will protect you from any financial loss caused by unintentional errors. What are you waiting for then? Contact your insurance agents now and have him draft an errors and omissions insurance policy now. Insure your business and have the peace of mind you’ve been longing for!