As the name implies, this insurance provides "errors and omissions insurance" for anyone who provides professional services. In some circumstances, the determination of "who" is a professional may be statutorily mandated; sometimes not.

This insurance is intended to provide coverage for acts of professional negligence which has resulted in personal/physical injuries or property damage to others. It may be sold as a separate policy, or as an endorsement on a more comprehensive package. There is similar coverage for Directors and Officers [D&O] of corporations, and Errors and Omissions coverage for attorneys, CPAs, and insurance agents. Generally speaking, these policies require that the policy holder provide notice to the insurer immediately upon becoming aware of facts which may give rise to a claim under the policy. So timing and notice are extremely crucial, and the more quickly you consult an attorney the more likely you may be to secure coverage under your policy.

Another interesting aspect of these policies is that, under some circumstances, they may provide for defense of a criminal action which arises out of professional conduct. These policies, however, will not pay for penalties, fines or sanctions, but may pay for the cost of criminal defense counsel. To make that determination, the policy must be thoroughly analyzed.

If you are a professional with a problem which has developed out of your professional conduct, call or email Barry M. Feldman immediately.