Errors and omissions (E&O) insurance in Nevada

Sole proprietors, startups, and corporations in the tech industry rely on E&O insurance to protect against lawsuits from dissatisfied clients.

Tech professionals often buy this coverage alongside cyber insurance as a package called technology errors and omissions insurance, or tech E&O. This bundle helps cover lawsuits related to data breaches and cyberattacks.

• An IT consultant recommends insecure software that leads to a data breach on a client's system.
• A cloud computing provider experiences an unexpected outage, suspending a client's ability to do business.
• A computer repair business fails to fix a client's computer in time for them to complete an important project.

Businesses that provide professional services carry E&O insurance to cover financial losses in case a client isn't satisfied with their work.

• An event planner fails to book a venue they'd guaranteed for a client's wedding.
• A security guard overlooks a threat and someone vandalizes their client's property.
• A recruiter makes a typo in a job listing and candidates expect a higher salary and different benefits.

When a construction company makes a mistake, the results can be devastating. That's why E&O insurance is common in the construction industry. Here, you're more likely to see it called professional liability coverage.

• An electrician installs faulty wiring, which causes a fire that damages a client's home.
• A painter fails to complete a project on time and a store is forced to delay its grand opening.
• A general contractor doesn't comply with building codes, forcing the homeowner to complete a costly renovation on an outbuilding.

State laws sometimes require physicians, especially those with admitting privileges, to carry medical malpractice insurance.

Healthcare professionals often need this coverage to work at hospitals and other healthcare facilities, and to participate in health networks.

In Nevada, visiting physicians from other states may need to carry malpractice coverage with $1 million aggregate / $3 million per-occurrence coverage.

Examples of situations where healthcare professionals in Nevada may need insurance include:

• A registered nurse accidentally gives the wrong dose of medication to a patient, who suffers an adverse reaction.
• A home health aide misses an appointment and their client is alone when they suffer a medical crisis.
• A chiropractor makes an improper adjustment that worsens a client's back pain.

Agents and brokers in both the insurance and real estate industries rely on errors and omissions insurance, partly because their work can significantly affect their clients' finances. States also sometimes mandate coverage, though Nevada does not require it.

Examples of situations where real estate and insurance professionals in Nevada may need insurance include:

• A real estate agent makes a mistake in an MLS listing, and the buyer discovers the property was smaller than advertised after they've finalized the purchase.
• An insurance agent fails to protect a client against risks they thought they were covered for, but they didn't find out until a flood swamped their property.
• A claims adjuster is sued for denying a valid claim because they accidentally looked at a neighboring property instead of the policyholder's home.

In Nevada, lawyers are not required to carry malpractice insurance.

While Lawyers in Nevada are not required to carry malpractice coverage, they must disclose their lack of coverage during license renewal.

Examples of situations where lawyers in Nevada may need insurance include:

• A law firm misses a deadline for submitting paperwork to the court on behalf of their client.
• An attorney fails to get consent from a client before making an important decision for them.
• A legal assistant misplaces a key document that was needed for a client's case.

General liability insurance typically does not include errors and omissions coverage, though it's possible to purchase these coverages together in some industries.

These two policies protect against different kinds of risks, which is why small business owners often carry both types of insurance coverage.

• General liability insurance covers accidents that harm someone outside your business, such as a customer who slips in your office and suffers a concussion, or an incident where an employee drops and breaks a client's laptop. It also covers advertising injuries, such as copyright infringement, libel, and slander.
• Errors and omissions insurance pays for legal costs when your business is accused of a negligent act that harmed a client financially. In the case of medical malpractice insurance, this can extend to bodily injuries as well, as physical health is part of a healthcare provider's professional responsibilities.

General liability claims can occur at any business, especially those open to the public. E&O insurance is more specific to businesses that offer professional services or advice, especially in areas where a mistake could cause a client to lose money.

Read more about errors and omissions insurance vs. general liability insurance.