Do I Need An Errors And Omission Policy?


As a business, you always try to satisfy your customer and provide the best service possible. However, accidents can and do happen. Unfortunately, in some cases an accident can lead to dissatisfaction and possibly even a lawsuit. To protect yourself in this scenario, you may need protection with E&O coverage. Do you need an errors and omission policy?

Common Questions About E&O Policies

Question: What is error and omission insurance?

Answer: An E&O policy, or errors and omissions, protects you should an unhappy client hold you liable for services performed incorrectly or nor provided. If you are faced with a lawsuit, this coverage can protect you.

Question: Do I really need this policy?

Answer: If you own a business and feel there’s a chance that a client may sue you then this coverage can protect you should you need to pay a settlement. While almost any business could benefit from this coverage, common professionals who benefit include doctors, accountants, lawyers, pharmacists, and even dentists.

Question: Doesn’t my business policy already include liability coverage?

Answer: Your policy probably contains general liability, which protects you should someone become injured on your property or business or become injured as a result of using your products. However, errors and omissions cover lawsuits related to economic loss or distress that isn’t related to a physical injury or loss of tangible property. Which means having both as part of your liability coverage is necessary to provide better protection for your business.

Question: What if the lawsuit is frivolous?

Answer: Even if the lawsuit is obviously false, you will still need to have the money to defend yourself. Don’t let a frivolous case cripple your finances. Talk to one of our insurance agents about E&O coverage. We can answer your questions and see what coverage your business needs to thrive.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets and put your mind at ease. To learn more, or to get a free quote,  call our Carrollton office today at 972-492-8500.