What Is Professional Liability Insurance, And Why Do You Need It?

professional liability insurance

If you’re just starting a new business, you likely are overwhelmed with the amount of details to go over. From figuring out finances and logistical elements of your business, there’s a lot to learn about. One of the more complicated things for entrepreneurs to learn about tends to be insurance, specifically professional liability insurance. Deciding on insurance for your new company can be tricky. For those business owners asking themselves, “what insurance do I need,” here’s a quick guide to get you started with professional liability insurance.


What does EandO insurance cover?


Professional liability insurance, otherwise known as error and ommissions or EandO insurance, is designed to protect you and your business from claims made by consumers against you that they have been financially impacted by an error or omission in your service. For some industries, EandO insurance is required; this tends to be in situations where the consequences of failure in service are far-reaching. This includes medical practices, legal services, and similar fields. This type of insurance may also be referred to as malpractice insurance in these fields, but still serves a similar purpose.


Who can use EandO insurance?


While these type of insurance services are required for certain types of companies, there are a wide variety of benefits for this insurance for people in many industries. For those getting started in the real estate industry, EandO can be useful. According to the Real Estate Investing Report, 55% of millennials are interested in investing in real estate, the highest percentage of all demographics questioned. However, this is also the youngest generation likely to be currently investing in real estate, making many of these investors new to the field. If you’re just getting started in real estate investing, look at EandO insurance for realtors to make sure you’re fully covered.


Looking for real estate insurance solutions for your new company, or just wanting to investigate what other insurance options exist for your personal insurance? Cobalt Steele offers a variety of insurance packages, including real estate insurance for both professional and commercial applications, as well as your own home. Contact Cobalt Steele today for more information on what insurance packages may be right for you.