errors and omissions insurance

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Errors and Omissions Insurance

An insurance policy providing coverage for a professional in the event he/she does not perform his/her duties well and it results in harm to a client. That is, errors and omissions insurance covers negligence. It is offered to attorneys, physicians, architects, etc. It is known by its abbreviation, E&O.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

errors and omissions (E&O) insurance

Insurance that protects against malpractice. Especially when working with a buyer's broker, who has a high degree of responsibility to anticipate problems and warn the client, one should ask for proof of E&O insurance before hiring a real estate professional.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Losses arising from the foreclosure litigation typically would be covered under either an errors and omissions policy, or--if there were shareholder litigation--under the company's directors' and officers' policy.
Likewise, all negligent acts, errors and omissions committed by a professional may not be covered.
However, pinpointing exactly where the other errors and omissions occurred is difficult.
Agents and brokers' errors and omissions insurance is a $500 million market with few big players.
MediKey provides coverage on behalf of the insured to settle or appeal an audit, as well as for civil penalties and fines, including defense, litigation, auditing and consulting costs arising from allegations of billing errors and omissions (subject to policy limits, terms, conditions, and exclusions); protection in the event of unforeseen, unwarranted, and unanticipated increases in Medicare/Medicaid payment denials (subject to policy limits, terms, conditions, and exclusions); extended levels of indemnification, with coverage limits of up to $5 million; and cash flow continuity, ensuring uninterrupted operation and patient service during dispute resolution.
He may have errors and omissions insurance for his work as an architect, but chances are he does not have general liability insurance.
The Born of the Spirit program has numerous errors and omissions and a defective methodology.
The second big surprise was that he was able to secure errors and omissions coverage scaled to the size of his business and his ability to pay that would protect his personal and business assets in the event of a lawsuit.
"Inconsequential" Errors and Omissions. Section (20)(10)12.3(1) provides that the penalty will not be assessed for any failure to include correct information on an information return, tax return, or payee statement if the failure is considered "inconsequential." The term "inconsequential" is defined as "one that does not prevent or hinder the Service in the processing of the information, putting the return to its intended use, or the payee from timely and correctly reporting the information on their tax return." TEI recommends that the IRS include examples (similar to those provided elsewhere in the draft) of "inconsequential" errors that should not be subject to a penalty.
The Central Bank of Turkey on Thursday also released details regarding "net errors and omissions" in data for the country's balance of payments for the first eight months of this year.
For instance, outsourcing jobs can lead to an employment practices liability lawsuit alleging discrimination and/or wrongful termination, and an expansion of products or services can increase a company's risk of an errors and omissions lawsuit.