Errors and omissions (E&O) insurance in Ohio

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 in 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 faulty 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 referred to as 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 fails to comply with building codes, forcing the homeowner to complete a costly renovation on an outbuilding.

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

In Ohio, physicians are not required to carry medical malpractice coverage, but they must provide patients with written notice of their lack of coverage when providing non-emergency services.

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

Examples of situations where medical professionals may need E&O coverage:

• A registered nurse mistakenly gives the wrong dose of medication to a patient, who suffers an adverse reaction.
• A home health aide misses an appointment, and their client suffers a medical emergency without the aide present.
• A chiropractor makes an improper adjustment, worsening 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 clients' finances.

States also sometimes mandate coverage, though it is not required in Ohio. The only exception is title insurance agents who process property transactions; they must carry a surety bond and E&O coverage.

Examples of situations where insurance and real estate professionals may need E&O coverage:

• 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 failed to protect a client against risks, only to find out they weren't covered when a flood swamped their property.
• A claims adjuster is sued for denying a valid claim after accidentally reviewing a neighboring property instead of the policyholder's home.

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

However, if they do not carry it, they must disclose to their clients that they do not. And if they do carry it, they need to carry at least $100,000 per occurrence and $300,000 aggregate coverage.

Examples of situations where legal professionals may need E&O coverage:

• 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.