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🛡️ '''Errors and omissions (E&O) insurance''' is a form of [[Definition:Professional liability insurance | professional liability insurance]] that protects insurance agents, [[Definition:Broker | brokers]], [[Definition:Managing general agent (MGA) | MGAs]], [[Definition:Third-party administrator (TPA) | TPAs]], and other industry professionals against [[Definition:Claim | claims]] arising from alleged mistakes, omissions, or negligent acts committed in the course of their professional duties. Unlike [[Definition:General liability insurance | general liability]] policies that address bodily injury or property damage, E&O insurance responds to financial losses a client suffers because the professional purportedly failed to perform services adequately — such as placing the wrong [[Definition:Coverage | coverage]], missing a renewal deadline, or providing faulty advice on [[Definition:Policy | policy]] terms.

🔧 Most E&O policies are written on a [[Definition:Claims-made policy | claims-made]] basis, meaning the policy in effect when the claim is reported — not when the error occurred — is the one that responds. A typical policy includes a [[Definition:Retroactive date | retroactive date]] before which acts are excluded, a per-claim [[Definition:Deductible | deductible]] or [[Definition:Self-insured retention (SIR) | self-insured retention]], and both per-claim and aggregate [[Definition:Limit of liability | limits of liability]]. Coverage generally extends to defense costs, settlements, and judgments. Many [[Definition:Insurance carrier | carriers]] offering E&O products also provide loss-prevention resources — risk management toolkits, sample procedures, and continuing education — because reducing the frequency and severity of errors directly improves the [[Definition:Loss ratio (L/R) | loss ratio]] on these books of business.

📌 Carrying adequate E&O insurance is not merely prudent — it is frequently a regulatory and contractual requirement. Most state [[Definition:Department of insurance (DOI) | departments of insurance]] mandate that licensed agents and brokers maintain minimum E&O limits, and [[Definition:Insurance carrier | carriers]] routinely require proof of E&O coverage before granting agency appointments or [[Definition:Delegated underwriting authority (DUA) | delegated authority]]. For [[Definition:Insurtech | insurtech]] firms operating as digital [[Definition:Brokerage | brokerages]] or automated [[Definition:Program administrator | program administrators]], E&O exposure can be amplified by algorithmic recommendation engines, making robust coverage and rigorous technology testing essential parts of their risk framework.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Errors and omissions (E&O)]]
* [[Definition:Professional liability insurance]]
* [[Definition:Claims-made policy]]
* [[Definition:Self-insured retention (SIR)]]
* [[Definition:General liability insurance]]
* [[Definition:Cyber insurance]]
{{Div col end}}

Definition:Errors and omissions (E&O) insurance - Revision history

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