Have you ever wondered if Errors and Omission’s insurance is the same as Professional Liability insurance? If so, you’re not alone. In recent years, the terms Errors and Omissions Liability and Professional Liability have been used interchangeably. 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.
In covered causes, intentional acts or decisions were intended to be covered by a true Errors and Omissions Liability policy, which protected against any act, error, or omission. Contrast this with a true Professional Liability insurance that only protected against negligent acts, errors, or omissions.
In covered consequences, as a general rule, Errors and Omissions Liability insurance included coverage for bodily injury, property damage, personal injury, and advertising injury. 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.
The historical distinction between Errors and Omissions Liability insurance and Professional Liability insurance no longer applies. All Errors and Omissions Liability and Professional Liability policy forms must be analyzed to determine the true scope of coverage.