Colorado Errors and Omissions Insurance

Errors and omissions insurance (E&O), also called professional liability insurance, is a form of specialized liability insurance that provides coverage for individuals and companies that provide professional services against claims of errors, omissions, violation of good faith, or negligence. In the event that a client suffers a financial loss due to an error or omission made by a professional such as a consultant, accountant, or lawyer, E&O insurance covers the associated legal fees and court costs as well as the compensatory costs resulting from the professional’s failure to adequately perform their duty. This type of coverage is designed to protect professionals and help them manage the financial burden of a claim and protect their assets and operations.

Error and omissions insurance is not legally required in Colorado; however, some professional associations or industry-specific organizations may require their members to have errors and omissions insurance as a condition of membership. It is a highly recommended form of coverage for all professionals who perform services or give advice, such as consultants, lawyers, architects, and financial advisors. E&O insurance helps protect a variety of professionals as well as their assets and operations, and coverage can be tailored to ensure the best coverage for the unique risks faced by professionals.