Errors & omissions insurance, or “E&O,” is a type of professional liability insurance. It is a claims-made type of policy. Its main purpose is to provide insureds with capital for defense costs and judgements/settlements against them if they are sued for a failure in their professional service. This could be an error, omission, misstatement, etc. in providing or failing to provide the promised professional service.
In E&O insurance, the insuring clauses set the stage. They tell you what the policy will do, who it will apply to and what specific terms you need to pay attention to. They are separate clause because they describe different types of risks and, as a result, may have different terms, conditions, limits of liability or retentions.
You will have to consult your policy documents to confirm exactly what coverage your Errors and Omissions insurance provides but here are a few scenarios that typically would and would not be covered: