What does Errors and Omissions Insurance mean?

It is a sort of liabilities insurance, which is bought mostly by professionals working in the financial area, like brokers, advisors, insurance agents. This type of insurance protects them against claims made by customers as to their deficient and faulty services, or in case mistakes happen from the part of the service provider. Usually this type of insurance covers the costs of legal actions which must be undertaken, and other expenses but only up to the value specified in the insurance contract.

Errors and Omissions – E&O- Insurance explained

This type of insurance is being acquired mostly by professionals working in the financial area and especially by those who are exposed to possible claims made by their clients. It is a very good protective measure because the risks and the exposure are very high in the financial area, and so a certain type of coverage is needed. Even in cases when lawsuits are a winner issue on the behalf of the financial advisor or insurance agent, still such lawsuits are costly, and in consequence such an insurance policy proves to have a very important role.