Errors and omissions insurance, or E & O coverage, is another name for law offices and attorneys professional liability coverage. This insurance is designed to protect you when lawsuits arise, making claims of professional mistakes. Whether your firm is actually at fault or not, a legal claim against your alleged actions will cost you in both time and money because you will have to defend yourself.
If, for example, a client claims that you caused them to lose their lawsuit because your company failed to file a deposition on time, they will sue your firm for the losses and damages. Whether you actually made a mistake or not, law offices and attorneys professional liability insurance will help pay for the expenses involved with defending yourself from this claim.
Depending upon your specific policy details and level of coverage, your law offices and attorneys professional liability insurance can also pay settlements and awards if needed, and it can pay for income losses caused by the non-billable hours you spent defending your firm against this claim.