Firearms Insurance Agent Blog

The Firearms Insurance Specialists

Understanding Errors and Omissions Insurance

insurance agent handing document to client

Business insurance is essential for any company, but especially those in the firearms industry. Nevertheless, as you’re shopping around for business insurance, you’ll find a variety of types. Here, we discuss errors and omissions insurance to determine if this type of business insurance is right for you.

What is errors and omissions insurance?

Also known as professional liability insurance or malpractice insurance, errors and omissions insurance (E&O) shields your business from lawsuits based on professional mistakes. As such, it has a narrower focus than general liability insurance.

E&O insurance can cover a variety of professional mistakes, including the following:

  • Negligent professional service
  • Failure to uphold standards of care
  • Errors or oversights
  • Failure to meet contractual obligations

Even if your business is falsely accused, E&O insurance can help you pay for the necessary legal fees to defend yourself and your business. This includes attorney fees, court costs, judgments, and settlements.

Do you need E&O insurance and general liability insurance?

Yes. General liability insurance and errors and omissions insurance cover two different things. General liability, for instance, can cover you if a client injures themselves on your property, but it does not cover any failure to uphold standards of care. E&O insurance, on the other hand, can protect you if you fail to uphold professional standards of care, but can’t protect you if a customer gets injured on your property.

To put it more simply, E&O insurance covers mistakes that you made; general liability covers accidents.

At Firearms Insurance Agent, we can help you find the right E&O insurance for your firearms-related business. Contact us today to learn more!