Errors and omissions insurance has many names as it is also known as malpractice insurance and professional liability. More professionals need this type of insurance than the public thinks as the public perception is typical that only doctors need this insurance. Basically, if your profession is based on providing advice or a type of service with certain standards then you need errors and omissions insurance in case you provide a suboptimal service.

Claims made against you would state that the service you offered for a fee wasn’t up to the standards of your profession. A lot of people need this from doctors to architects and even computer consultants. All of these are prone to claims regarding the service they provide. Since errors and omissions insurance is needed for people who have different jobs, there are several different types of policies.

Doctors and others who participate in healthcare have medical malpractice policies that are quite well known. Attorneys have lawyer professional policies while those who work in design like architects have separate policies. Each type of policy comes with certain features tailored to suit a certain profession or group of professions.

While different policies are modified according to different jobs, most errors and omissions insurance policies have the same core of features. These include coverage for claims and defense needed to fight back against these claims. If a claim is proven to be right then the insurance policy should cover you in terms of what you have to pay (up to a limit of course).

Error and omissions policies, however, don’t hold up in all cases. For example, if there are claims made for wrongful acts or illegal business then you can’t expect your insurance policy to protect you. Additionally, error and omissions insurance has no role in fee disputes or discrimination cases. In order to know the full details of everything that’s included and excluded from your policy, you’ll need to read it carefully while obtaining it.

One way an error and omissions policy might protect a doctor is if a complication occurs during surgery for example. If the complication has been described in medical literature and is known to happen with said surgery in the medical community then the policy would protect the doctor. On the other hand, if the doctor harms the patient through a wrongful act or by discriminating against the patient then the policy would not play any role in defending him or her. Basically, an error and omissions insurance policy covers a business owner in the event of inadequate work or negligence.

Any architect or doctor will tell you about the importance of having this type of insurance policy. Lawsuits and claims could end up costing millions and without a policy having their backs, architects, consultants, and physicians could face serious consequences that are usually legal and financial. Having an insurance plan to protect you in times like these could save your career and company from going under.