Errors and Ommissions

The insurance business is full of instances where we seem to make an art of making things complicated.

I’m often in conversations where the words we use makes for misunderstandings.

The phrase “Errors and Omissions” is an example.

E&O insurance (errors and omissions) is used as a synonym for professional liability.  Malpractice insurance is another term used when referring to professional liability insurance.

E&O, professional liability and malpractice insurance (in this context) means insurance against an error or mistake made in a profession that leads to an injury to a third party – negligence that causes damages.

-A doctor cuts out the wrong kidney.

-A dentist pulls the wrong tooth.

-A real estate agent who fails to discover a major flaw in a property she sells.

-A veterinarian who makes an error in treating your pet.

-A mortician who fails to perform his work correctly.

-A banker who denies a loan request that should have been granted.

-An insurance agent who fails to put the correct coverage into place.