What is Errors & Omissions Insurance?
E&O is a form of professional liability insurance that helps protect professional advice and service. It protects individuals and businesses from bearing the entire cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage concentrates on alleged failure to deliver on the part of financial loss caused by, and inaccuracy, or omission in the service or product marketed by the policyholder.
In the financial industry, lawsuits happen, despite how baseless the claims may be. Clients may attempt to sue an advisor or broker after an investment goes sour, even if the risks were recognized and within the guidelines placed by the client. In these cases, even if a court or arbitration panel decides in favor of a broker or investment advisor, the legal fees can be very high, and E&O insurance is essential in these situations.
Who should purchase E&O Insurance?
- Investment firms (financial advisors, hedge funds, venture capitalist firms, investment bankers, banks)
- Doctors (medical, dental, psychological, chiropractors)
- Insurance Agents
What is Directors and Officer’s Liability Insurance?
D&O Insurance is business liability insurance formulated to protect the Directors and Officers of for-profit corporations, privately held firms (such as hedge fund and investment firms), not-for-profit organizations, and educational establishments.
D&O Insurance can compensate for losses or advancement of defense costs in the case an insured suffers such a loss as a consequence of a legal action brought for alleged wrongful acts in their positions as directors and officers. Such coverage can extend to defense costs resulting from criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are declared against directors/officers concurrently. Voluntary illegal acts, however, are generally not covered under D&O policies.
Get the coverage you need
Mills & Mills Insurance is based in beautiful Wilton, CT, 06897 45 minutes from New York City and 2 hours from Boston. We serve Fairfield County, Westchester County, Long Island and all of Rhode Island.
Mills & Mills Insurance will provide you with the right coverage to make sure your investments are safe during a disaster. When partnering with us, we will give you all the necessary information and options you need to make the best choice of insurance company and policy. Give us a call today at (203)- 762-8373.
35 Old Ridgefield Rd, Wilton CT 06897