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E & O insurance covers legal liability of an insured company for certain errors and omissions committed by the company itself , or by persons whose errors and omissions the company is legally responsible such as employees acting within the scope of their employment . Because property all risk insurance as well as public liability insurance policies excluding errors and omissions coverage and not cover financial losses , E & O insurance policy fill the gap.
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An insurance that protects the insured against liability for committing an error or omission in performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury (BI) and property damage (PD).
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