A Professional is someone whose occupation requires special training and skill. Historically, solicitors, accountants, architects, engineers, and medical professionals were the sole occupations that fell into this category as their industries established strict requirements and codes of conduct for regulation. In order to practice in these fields, it was necessary to undergo formal training, pass a state licensing exam, and to be provided with credentials. The first Professional Indemnity Insurance (Errors and Omissions Coverage) policies were devoted exclusively to this group.
Gradually, other types of professionals requiring Professional Indemnity Insurance (Errors and Omissions Insurance) began to emerge such as real estate agents, business consultants, social services counsellors, educators, allied health care professionals, computer technology professionals, etc. While these other classes are often referred to as quasi-professionals under the eyes of the law, they have already developed their own industry regulations for education, testing, and accreditation.
Miscellaneous Professional Indemnity Insurance (Errors and Omissions Insurance) policies have been developed to address many of the litigation concerns of these new classes of professionals such as computer information technology professionals.
Professional Indemnity Insurance (Errors and Omissions Liability) provides protection against certain types of lawsuits arising out of negligent acts, errors, or omissions committed during business activities and which result primarily in economic damages that are not related to bodily injury, property damage, personal injury, or advertising injury.
Professional Indemnity Insurance (Errors and Omissions Liability) policies are meant to respond to lawsuits alleging solely economic damages where the client has lost money as a result of a negligent act, error, or omission in the performance of the professional services.