The world of insurance can be a tricky place to maneuver. With so many different types of policies and confusing terms, its can certainly be an intimidating industry. One common confusion between even the most experienced insurance shopper is the distinction between professional liability vs errors and omissions insurance. You may be pleased to know that they have much more in common than you think.
Professional Liability Overview
Professional insurance is a large framework that handles the expenses that stem from ligation involving supposed negligence, financial loss, design flaws and malpractice. If someone is not pleased with your creative ideas because they resulted in some loss, they can sue. Luckily, professional insurance is there to help.
Errors and Omissions Guide
Meanwhile, errors and omissions liability is a certain type of professional liability. It also shields the company and its employees from the expensive results of a lawsuit that involves negligent work and activities.
Therefore, each is a stepping stone away from each other and can even be used interchangeably. The difference between professional liability vs errors and omissions insurance is the industry in which it applies. E&O is commonly used by agents, brokers and lawyers while professional liability is used by contractors, consultants, tech companies and many more.
Now that you know the difference between each, you are ready to shop for your next insurance policy with confidence. Start building your commercial policy today!