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Professional Liability Insurance Versus Errors & Omissions Liability Insurance
In recent years, the terms ‘Errors and Omissions Liability insurance’ and ‘Professional Liability insurance’ have become one and the same. Errors and Omissions Liability insurance and Professional Liability insurance are virtually interchangeable terms within the insurance industry.
However, this was not always the case. Historically speaking, Errors and Omissions Liability insurance differed from Professional Liability insurance in both “covered causes” and “covered consequences”.
As concerns covered causes, intentional acts or decisions were intended to be covered by a true Errors and Omissions Liability policy as it protected against any act, error, or omission. Contrast this with a true Professional Liability insurance form as it only protected against negligent acts, errors, or omissions.
As concerns covered consequences, as a general rule, true Errors and Omissions Liability insurance forms also included coverage for bodily injury, property damage, personal injury, and advertising injury. The reason for this is because General Liability policies often excluded the professional services exposure. A perfect example of this is in the context of medical professionals who must have coverage for bodily injury malpractice to their patients.
As has been previously stated, the historical distinction between Errors and Omissions Liability insurance and Professional Liability insurance no longer applies as the terms are now interchangeable. All Errors and Omissions Liability and Professional Liability policy forms must be analyzed to determine the true scope of coverage.
Find out how much Professional Liability (Errors and Omissions Liability) Insurance for information technology companies can cost for you. |
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Sadler & Company, Inc.
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Columbia, SC 29250
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