Market Spotlight: Miscellaneous E&O

Miscellaneous errors & omissions coverage is an important part of protecting any business and professional offering any type of professional service. There are many available markets for the class so knowing what service the business provides and what their exposures are is critical to making sure they are adequately insured with this important coverage. According to Markel, one of many insurers that specializes in this class, miscellaneous E&O is vital coverage for any business that offers special skills and experience, is held to a higher standard of care, provides expert advice to unrelated third parties, or received payment or a fee from the third party for the advice.
Without this coverage, clients can be left exposed to allegations of negligence, misrepresentation or inaccurate advice if the professional's performance falls short of their expectations, Munich Re says.
"Legitimate or not, these claims can lead to lengthy and expensive defense litigation," the insurer says. Policies typically cover liability and defense costs from claims that alleged errors and omissions in the rendering of professional services.