A professional liability for which producers can be sued for mistakes for putting a policy into effect is called

• A. Malpractice
• B. Negligence
• C. Breach of contract
• D. Errors and Omissions

Answer: (D)

Errors and Omissions coverage is the professional liability protection for producers who make mistakes in delivering their services. When a producer puts a policy into effect, they’re performing a professional service—gathering information, advising, quoting, and issuing the policy. If a mistake occurs, such as misquoting terms, omitting important information, or misrepresenting coverage, the client may sue for damages caused by that error. This is precisely what E&O protects against: claims arising from errors or omissions in the professional services provided, not from general negligence or breach of contract. Malpractice is reserved for medical professionals, and breach of contract involves a failure to meet a contractual promise, which is a different basis for a claim.