What does Errors and Omissions Insurance primarily protect against?

Errors and Omissions Insurance is specifically designed to protect professionals, including those in the construction and inspection domains, against claims of negligence, inadequate work, or misjudgments made in the course of providing professional services. This insurance covers situations where a professional's actions or decisions may lead to financial loss for a client due to mistakes or oversights, which is particularly relevant for individuals involved in inspections and assessments.

Misjudgments during building inspections can result in significant repercussions for clients if problems go unreported or if guidance provided is faulty. With Errors and Omissions Insurance, technicians are protected against lawsuits or claims arising from these kinds of professional errors. Such protection is essential, as it mitigates the risk of financial loss resulting from claims related to perceived negligence.

In contrast, the other options focus on different types of protection. Expenses related to physical damages would typically fall under general liability insurance. Liability for criminal activities is not covered by Errors and Omissions Insurance, which functions strictly within the scope of professional errors. General business liabilities cover a broad range of potential risks faced by businesses but do not specifically address professional errors and omissions in service delivery. Therefore, the focus on misjudgments made during building inspections accurately describes the primary function and purpose of Errors and Omissions Insurance