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Simple English definitions for legal terms
errors and omissions
Read a random definition: Third party
A quick definition of errors and omissions:
Errors and omissions is a type of insurance that protects professionals from mistakes they make while doing their job. This insurance only covers accidental mistakes, not on purpose ones. For example, if a lawyer forgets to file an important document and their client loses money because of it, errors and omissions insurance can help cover the cost of the mistake.
A more thorough explanation:
Errors and omissions is a type of liability insurance that provides coverage to professionals against damage caused by their mistakes or omissions while providing professional services. This insurance is also known as E&O insurance.
Errors and omissions insurance only covers unintentional errors and omissions resulting from negligence. It does not cover intentional wrongs.
For example, a lawyer may carry errors and omissions insurance as part of their malpractice coverage. If the lawyer makes a mistake or omission while providing legal services to a client, and the client suffers damages as a result, the insurance can provide coverage for the lawyer's liability.
Another example could be a financial advisor who provides investment advice to a client. If the advisor makes a mistake or omission that results in financial losses for the client, the errors and omissions insurance can provide coverage for the advisor's liability.
These examples illustrate how errors and omissions insurance can protect professionals from liability for unintentional mistakes or omissions while providing professional services.