State requirements for errors and omissions insurance

States sometimes require E&O insurance as part of their licensing requirements for real estate brokers, insurance producers, and similar professions.

• Real estate agents and brokers must carry this coverage in more than a dozen states, including Idaho, Kentucky, New Mexico, and Tennessee.
• Home inspectors are required to have E&O insurance in about one in three states.
• Insurance agents and brokers are sometimes regulated by state laws as well. For example, Rhode Island producers must carry an E&O policy with coverage limits of at least $250,000 per claim and $500,000 aggregate.

Your agency might require you to carry a certain amount of errors & omissions insurance, or may even provide this coverage for you.

Medical malpractice insurance is mandated in some states for healthcare professionals, most often for physicians with admitting privileges and nurses who work in high-risk fields.

• Physicians must carry malpractice insurance in seven states: Colorado, Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island, and Wisconsin.
• Advanced Practice Registered Nurses (APRNs) must have malpractice coverage in several states, including Connecticut, Massachusetts, and Wisconsin.
• Licensed therapists often need this insurance as well. For instance, marriage and family therapists in California must maintain professional liability coverage to enroll as a Medi-Cal provider.
• Certified midwives are required to carry malpractice coverage in Kansas, Missouri, and Oklahoma.

You might also need malpractice insurance to work for a specific healthcare network or facility, get licensed, participate in a professional organization, or qualify for state-run programs that assist with malpractice claims. States that have these kinds of programs include Nebraska, New York, and Pennsylvania.

While attorneys aren't usually required by law to carry malpractice insurance, they often must disclose whether or not they have this coverage. In some states, only law firms with certain business structures need a malpractice policy.

• Alaska attorneys don't need malpractice insurance, but they must notify clients if their limits are less than $100,000 per claim or $300,000 aggregate.
• New York attorneys aren't required to carry coverage or inform anyone of their insurance status.
• Oregon attorneys must have malpractice insurance in the amount of $300,000 per claim / $300,000 aggregate provided by the Oregon State Bar Professional Liability Fund (PLF).
• Rhode Island attorneys only need malpractice insurance if they work for a corporation, limited liability partnership (LLP), or limited liability company (LLC).

In addition, some courts and clients may require lawyers to carry malpractice insurance. It's strongly recommended for private practices, given the high cost of malpractice suits.

Yes, general liability and E&O insurance cover different risks, which is why you need both types of coverage. As with E&O insurance, your state might require you to carry a general liability policy to get licensed in certain professions, such as general contractors.

• Errors and omissions insurance covers lawsuits related to financial losses, such as poor investment advice that causes a client to lose money. It's especially important for businesses that offer professional services or consulting.
• General liability insurance pays for legal defense costs when someone outside your business is injured or their property is damaged. This policy is crucial for businesses that are open to the public, such as retail stores. It's also important for businesses that enter clients' homes and offices, such as cleaners.

General liability insurance can also cover claims that your business copied a logo, slandered a competitor, or used an image without the creator's permission. Small business owners may need several types of insurance to cover all of their relevant risks.