Do You Have Enough Coverage for Company Administrators?
Business administration liabilities can fall upon an individual responsible for overseeing the company as well as the individual performing a specific task. The differences between these situations provide the background in choosing between E&O vs D&O insurance plans. Each plan is designed to address a unique area of liability and prevent an individual from experiencing loss.
The Nature of Coverage
According to the information presented by Transparity Insurance, errors and omissions insurance protects a professional or company from liabilities and loss associated with administrative errors or inaccuracies that cause client harm or loss. Medical personnel often carry malpractice insurance, which is a form of errors and omissions, just as directors and officers coverage is a form of E&O.
The Specifics of D&O
For the highest levels of company leadership, there can be great scrutiny and demand for accountability when actions or decisions create a situation of loss. Executives or board members can often be subject to allegations of negligence, and while a general errors and omissions policy will cover acts of mistakes, directors and officers policy can be used when someone simply asserts that negligence of duty occurred.
Because of the specific areas, these policies cover, a company would be wise to invest in both coverage plans. Check with your insurance provider on the potential exclusions of what you have and ask about extending your coverage.