What is an errors and omissions compliance?

Errors and omissions (E&O) compliance refers to the adherence to legal and regulatory standards that protect against claims of inadequate work or negligent actions in professional services. It typically involves implementing policies and procedures to identify, mitigate, and manage risks associated with errors or omissions in service delivery. E&O compliance is crucial for professionals such as consultants, real estate agents, and insurance brokers, as it helps ensure they maintain industry standards and protect against potential lawsuits. Proper E&O compliance can also enhance a firm's credibility and trustworthiness in the eyes of clients.