Professional individuals have undergone studies and training to become professionals in their particular chosen field. They have studied their profession in college, passed their board exams, have taken apprenticeship, attended a multitude of training and seminars, and have racked years of experience themselves to attain where they are right now. Nevertheless, a human will always be human as even professionals are not free from making any mistakes.
The issue with making mistakes in certain professions is that even the simplest ones can lead to serious financial loss of clients, compromised structural integrity, or inferior outcome. When such an issue occurs, it is often in the best interest of the client to file lawsuits against the professionals that they have trusted for their knowledge in their particular field. Of course, not all lawsuit claims made by clients are with merit. Sometimes, even the simplest misunderstanding can lead to such lawsuits, thus resulting with the professional having to defend his reputation in course.
When lawsuits are filed against a professional, he will need to defend his case in court. Court cases are often expensive and can last from months to years. If the plaintiff has a deep pocket, such court hearings can end up costing the professional lots of money as he will need to shoulder all the expenses made as he defends his case, profession, and reputation. If the professional has Errors and Omissions Liability Insurance, he does not need to should the expenses made from the court trial as the insurance institution he has E&O insurance with will should all the expenses made during the trial.
If you are an individual professional, getting errors and omissions insurance may be in your best interest. Being equipped with this type of insurance provides you adequate coverage from such lawsuit claims. Basically, the expenses brought by claims made against your professional services will be shouldered by your insurance company. All the legal costs such as lawyer fees and court fees will be covered by your insurance company. Depending on your insurance policy, even the settlements can be partly covered by your insurer as assistance coverage.
These days are very litigious times and you can be sued for negligence even if their case has merit or not. For this reason, all professionals who provide professional services should properly equip themselves with errors and omissions insurance for their overall protection.