Business liability insurance covers losses related to bodily injury, property damage or advertising injury.
But what happens when a printer neglects to catch a typographic error on a large order of engraved wedding invitations?
Or when a plumbing repair fails and causes an entire office to be flooded?
Issues like these can be resolved with the purchase of errors and omissions (E&O) insurance. E&O insurance is a kind of specialized liability protection against losses not covered by traditional liability insurance. It protects you and your business from claims if a client sues for negligent acts, errors or omissions committed during business activities that result in a financial loss.
E&O insurance is typically customized to meet specific needs of a business or industry. For example, a printer has different risks than an electrician. Both have the need for liability insurance, yet each needs a completely different type of coverage.