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:
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
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.