If an agent gives incorrect advice, which policy might cover them for related losses?

Errors and Omissions (E&O) insurance is specifically designed to protect individuals and businesses who provide professional advice or services. This type of insurance covers claims of negligence, mistakes, or failure to perform professional duties, which can lead to financial losses for clients.

In situations where an agent provides incorrect advice that results in a financial loss for a client, E&O insurance would cover the agent for those losses. It encompasses scenarios where the agent might be sued for not fulfilling their professional responsibilities to the client, thus safeguarding the agent’s financial interests.

While liability insurance is a broader term that includes various types of coverage for legal claims, it does not specifically address the nuances of professional advice. Medical insurance focuses on health care costs and does not apply to the context of professional advice. Nonadmitted insurance refers to policies written by insurers not licensed in the state, and it is unrelated to the protection against professional liabilities.

In summary, E&O insurance is tailored for the risks associated with professional services, making it the appropriate choice for coverage related to giving incorrect advice.