Commercial insurance is already a confusing venture for any business owner. Terms like professional liability and errors and omissions make it even harder to pin down the right coverage package. You may have seen insurers use one term or another without really knowing the difference. Well, you may be relieved that these terms have much more in common than you think. Here is a quick guideline to professional liability vs errors and omissions insurance.
A Protective Barrier for Services
Any profession that provides some type of critical service to clients can benefit from different kinds of professional insurance. Each type protects different levels of a company in case a client feels like they did not receive adequate service, experienced a breach of contract or were a victim of an error that cost them financially.
The Name Game
The main difference between professional liability vs errors and omissions insurance is simply what industry it is referring to. The architectural and engineering industry typically use the term professional liability while accountants, tech companies real estate and insurance agents will usually use the term errors and omissions. Both of these provide essentially the same protection in case of a lawsuit involving services and advice.
Regardless of your specific industry, it is important to obtain coverage for the professionals in your business. Make sure to work with a qualified agency to finalize the best insurance contract.