An errors and omissions insurance policy (E&O) is a must for all professional practices and should be part of the insurance portfolio of any contractor who also provides design services. An E&O insurance policy, sometimes referred to as a professional liability policy or malpractice insurance, can help professionals pay for costs that fall outside of their general liability insurance protection.
Costs incurred for settlements, damage awards and defense costs are typically covered under errors & omissions insurance. Some insurers offer policies that provide legal defense costs outside of liability limits, meaning attorneys fees won’t eat away at what’s available to pay settlements or damages. It’s even possible, depending on the policy, to get legal expenses paid for from the first dollar forward.
If you are interested in covering work you did before initiating a policy, this can be accommodated under prior acts coverage. Most E&O policies exclude punitive damages and limit coverage for the services of independent contractors, so we will dig deeply into your staffing arrangements and operations to make sure the coverage is tailored to your needs.