As a business choosing the right types of liability insurance can be important. Especially if you’re looking as directors and officers coverage vs errors and omissions (d&o vs e&o). Both coverage types can protect your company, however they are not the same policies. Keep reading to learn a bit about what each covers so you can choose the right type for your insurance needs.
Directors and officers coverage is designed to protects the main management of a company from any allegations that may arise due to management decisions. This type of coverage may also be referred to as management liability. These policies apply only to the management team of a company and not the business in general.
Errors and omissions coverage, on the other hand, protects the business in the event an allegation is made that the company failed to provide a service, or that the service provided in some way led to loss or damage to the client or their assets. This coverage can help protect against mistakes, such as lost paperwork, that may lead to potential lawsuits.
When choosing between d&o vs e&o insurance policies it’s important to keep in mind the coverage needs of your business. In some cases it may even be a good idea to invest in both. If you have any questions your insurance agent can help.