Individuals and companies take out errors and omissions insurance policies (E & O insurance) in case negligence occurs during their handling of a matter for a customer or client. Without an E & O policy, a professional who provides services or advice could have to pay the entire cost of defending against another party’s negligence claim, as well as any damages awarded as a result of the claim if it is attributable to the negligence of the person that provided the underlying service. Professional liability insurance such as an E & O policy is purchased in addition to general liability insurance, which only covers certain kinds of harm such as property damage and personal injury.
Disputes involving alleged professional negligence are relatively common, as the related legal claims can cover a variety of alleged misconduct. Professionals such as accountants, real estate and financial brokers, financial consultants, insurance agents and attorneys take out professional liability policies to protect against claims arising out of the services they provided. Likewise, company directors and officers take out D & O insurance policies to guard against the cost of defending against legal claims related corporate governance and breach of fiduciary duty. Individuals and businesses involved in any such dispute should have on their side a legal team that is fluent in the language of insurance policies and professional errors and omission claims. Whether you are the defendant or the claimant in a professional malpractice dispute, a lawyer with extensive experience in this complex area of law can explain your options and work to protect your interests.
If you would like to learn more about resolving insurance disputes, then the professional liability overview of Shulman Bastian Friedman & Bui LLP is a good place to start.