Colorado Errors and Omissions Liability
Colorado Errors and Omissions Liability Insurance is business liability insurance for professionals who incur specific risks in their fields. No matter what profession you’re in, an error or omission—even a simple mistake—which causes financial harm to another can put you at risk.
This policy can help protect you or your company from bearing the full cost of defense for lawsuits that may occur. This is a separate coverage from your standard general liability or property insurance.
How does Colorado Errors and Omissions Liability protect you?In general, Colorado Errors and Omissions Liability Insurance helps pay for defense costs and damage awards that may be associated with professional liability claims. Defense costs, for example, can run into the thousands of dollars, even if you are eventually vindicated, so it’s an important coverage to have.
A Professional liability claim must allege negligence in either the performance of or failure to perform Professional Services. These policies, much like Directors and Officers Liability Insurance, have a specific limit of liability and usually include both legal costs and damage awards in a single limit. Errors and Omissions insurance does not cover intentional, fraudulent or illegal activities or in most policies, punitive damages.