Jones Family Insurance - Insurance in Fort Myers Florida

Professional liability and errors and omissions insurance both protect businesses from expensive lawsuits caused by unsatisfactory work. The language used may differ by industry.


Professional liability vs. E&O vs. malpractice insurance

Many industries use the terms “E&O insurance” and “professional liability insurance” interchangeably. You may also hear these policies called “malpractice insurance.”

Common industry names for this policy include:

  • Professional liability insurance for architects, accountants, and consultants
  • E&O insurance in the real estate and IT sectors
  • Malpractice insurance in the medical and legal professions

No matter the name, this coverage protects you from lawsuits if you make a work mistake, fail to complete a project, miss a deadline, or are accused of professional negligence.

How professional liability insurance protects your business

Businesses that provide professional services typically need professional liability / E&O coverage because those services come with risks. A client could hold your business liable for:

  • breach of contract
  • work oversights or errors
  • providing substandard or incomplete work
  • missed deadlines

If these professional mistakes result in financial losses for a client, they could sue to recoup expenses. Professional liability / E&O insurance helps cover:

  • attorney fees
  • court costs
  • settlements or judgments

Even if there was nothing wrong with the quality of your work, a difficult or dissatisfied client could sue your business over a perceived problem. In that case, you might win the lawsuit but still have to pay attorney fees and court costs out of pocket. Without professional liability / E&O insurance, a lawsuit could present a major financial difficulty for your business.

Learn more at Jones Family Insurance – Serving Punta Gorda and Fort Myers