Errors & Omissions (E&O) Insurance is a professional liability insurance product designed to protect medical professionals from lawsuits from workplace mistakes. No industry operates 100% free of mistakes. Human error is always possible when people are a part of the equation. In the medical profession, mistakes can impact patients and have costly repercussions for healthcare providers.


Why E&O Insurance is Essential

Find out how E&O Insurance protects medical professionals.

What Does E&O Insurance Cover?

Errors & Omissions insurance policies can protect medical professionals when patients file claims stemming from treatment. When someone files a lawsuit, E&O can assist with damages and expenses alleged by the claimant. It also helps with legal and court costs, including attorney fees and whether the healthcare provider is liable. Therefore, there are judgments and settlements when the healthcare provider is at fault, and E&O helps protect medical professionals in this scenario.

How Does E&O Insurance Help the Medical Field?

The legal fees and potential payouts resulting from lawsuits can devastate an uninsured healthcare provider. E&O coverage can protect in the following scenarios:

  • Breach of contract suits from clients or third-party vendors
  • Malpractice lawsuits
  • Misrepresentation claims related to services offered
  • Negligence claims
  • Professional misconduct suits, including bullying, discrimination, or harassment
  • Slander or libel suits filed by patients or employees

Who Can Benefit From E&O Insurance?

The high risks associated with the medical industry make E&O insurance for healthcare providers a significant investment. The risk of a lawsuit increases with every piece of advice dispensed and each patient treatment administered. However, doctors and dentists are just some healthcare providers who can benefit from E&O coverage. The following medical professionals should also consider obtaining Errors & Omissions insurance.

  • Chiropractors
  • Gastroenterologists
  • Medical Technicians
  • Nurses
  • Optometrists and opticians
  • Physical therapists
  • Podiatrists
  • Psychiatrists and psychologists
  • Radiologists
  • Surgeons


When Does This Policy Not Pay?

Provided the E&O policy is kept current, it covers most issues related to lawsuits and claims against the company. However, certain circumstances do not have coverage, including bodily injury claims, criminal acts, or data leaks associated with cybercrime. Likewise, it does not cover discrimination suits or employee injuries. It does not account for illegal acts or wrongdoing. Additionally, temporary employees do not get coverage. It does not cover claims from work done before the policy started or claims filed in different jurisdictions.


How Much Does the Policy Cost?

The cost of a typical E&O policy varies depending on several factors. Most businesses expect to spend approximately $500-$1000 annually per employee for an average E & O policy. Factors that impact the cost of a policy include the amount of coverage and the location of the workplace. Likewise, the number of employees, past liability claims, and projected risk play a role.

Regardless of the cost of the policy, the peace of mind afforded to healthcare providers when they know they have protection from lawsuits and potentially significant judgments are worth the expense.