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The Difference Between E&O and D&O Insurance

Axis Insurance Agency offers a number of different policies for businesses. Understanding the different types of insurance can help you better manage your risks and liabilities and ensure that you have the right insurance for your risks.

Errors & Omissions insurance provides financial coverage for professionals who give advice or represent the needs of others. It’s often called malpractice insurance, or professional liability. When your business makes an error or neglects to do something you should have, this policy steps in to cover the financial costs of litigation. E&O insurance covers the representative or employee of a company and the company itself, provided the policy is written that way.

Directors and officers insurance policies offer coverage for officers and directors of the business who may get sued in their professional capacity. If a business or investment decision goes awry and causes a lawsuit to be filed against the director, this policy covers their liability.

One key thing to remember with either E&O or D&O insurance is that intentional illegal acts are not covered. Although the cost of a defense and damages may be covered by the policy, punitive damages in a lawsuit, if awarded to the plaintiff, typically are not covered by either insurance. It’s important to understand your E&O or D&O policy to know the limits. Ask Axis Insurance Agency which policies are right for your business.