While some policies sound similar, they often cover different aspects. There are distinct differences in E&O vs D&O insurance policies. Understanding these variances means you can select the policy that is right for your business and have the coverage you need.
Errors and Omissions Coverage
An errors and omissions policy, also known as professional liability, provides coverage when claims of wrongfully performed services or malpractice are brought against a business. This type of insurance provides protection for employees in any department who directly offer services to clients. The areas of coverage included in an E&O policy include the following:
Directors and Officers Coverage
While E&O insurance covers all individuals in contact with clients, directors and officers insurance covers the management team with personal liability. This policy specifically protects the executive team’s management decisions when various claims are filed against those choices. The following are claims covered by D&O insurance:
Mishandling of information and finances
Unfair business and employment practices
Which Is Right for You?
Errors and omissions is the standard that most businesses have, but it may be a good idea to have both policies for full coverage. When you know how E&O vs D&O differ, you can make an informed decision about which policy you need to ensure your business is protected. Source: Axis Insurance Service