professional liability vs errors and omissions insurance

Providing Full Coverage for Your Business

Providing Full Coverage for Your Business

To ensure full coverage of the company and employees, many businesses use a combination of different policies. Understanding the difference between professional liability vs errors and omissions insurance means you can fully protect your business when it comes to malpractice and wrongful acts.

The Main Difference

Many confuse E&O and professional liability as to the same type of insurance coverage. However, there is one glaring difference. E&O coverage protects everyone in the company from malpractice or negligence claims. Professional liability, or directors and officers insurance, protects only the executives of the company rather than the whole workforce.

The Scope of Coverage

While professional liability and E&O sound similar, they offer different coverages. E&O insurance covers the following:

Malpractice

Omissions or negligence

Work that results in monetary problems for the client

Professional liability provides a wider scope, although with a more limited audience. The following are covered by this insurance policy:

Misappropriation or mishandling of funds

Poor decisions for investing

Lawsuits due to employment practices

Wrongful acts

The disclosure of sensitive information

Protecting All Areas of Your Business

While there are differences between professional liability vs errors and omissions insurance, both combine to create powerful protection for your business. That means everyone from your executives to the workers on the ground floor can be covered under these policies for the ultimate security.