Which insurance protects agents who are sued for financial loss due to incorrect information provided to the agent?

• A. Errors and Omissions (E&O) Insurance
• B. General Liability
• C. Property Insurance
• D. Personal Umbrella

Answer: (A)

When a professional provides information or advice and a client suffers a financial loss as a result, the protection needed is Errors and Omissions Insurance. This type of policy covers claims of negligence, mistakes, or omissions in the services you perform, including incorrect information given to clients. It helps with defense costs and any settlements or judgments up to the policy limits, specifically for errors in professional duties rather than for general risks.

General liability focuses on third-party bodily injury, property damage, and certain advertising injuries, not on financial losses from professional advice. Property insurance protects physical property, not the accuracy of information or the outcomes of professional guidance. A personal umbrella adds excess liability limits but relies on existing underlying coverages and isn’t designed to address claims arising from professional errors. Therefore, for protection against being sued for financial loss due to incorrect information provided to a client, the appropriate coverage is Errors and Omissions Insurance.