Liability Insurance Versus Errors And Omission – What Is The Difference
Do you know the difference between liability insurance and errors and omission insurance? The truth is that these are pretty much the same thing. Liability insurance is actually the umbrella policy that errors and omission insurance falls under. The order goes like this, liability insurance, then professional liability insurance and lastly followed by errors and omission insurance. All of these policies are great but they do different things. For example, liability insurance only covers damage of some kind due in part to your liability. As far as professional liability cover goes, that protects you against any financial liability that you may have causes. Now, errors and omission insurance is what people call professional liability insurance when it is going to a professional in the financial field.
As you can see, there really is not a huge difference between the two different insurance policies. Most people think that liability insurance and errors and omission insurance are the same thing but there are little differences that set these two things apart. I am not saying that liability insurance will cover any error and omission, because it won’t, and that is why you might have to have a general liability insurance policy and errors and omission insurance.
Something that you should be aware of is that in medicine, professional liability insurance is actually called medical malpractice insurance. This is generally the same thing as errors and omission insurance except it also covers a malpractice of some kind. It doesn’t matter if the medical professional purposely did something wrong or not knowingly did, they still need professional liability insurance. Being that a medical professional is human, they will make mistakes once in a while. You don’t need to try and be perfect all the time because sometimes you will make a mistake and that will really hurt you in the future. Now, do others a favor and make sure they know the difference between liability insurance and errors and omission insurance so that not everybody is left in the dark.
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