---
title: Exploring the Need for E&O Insurance for the Financial Sector
description: Exploring the Need for E&O Insurance for the Financial Sector
---

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# Exploring the Need for E&O Insurance for the Financial Sector

[Mike Smith](https://blog.plrisk.com/author/mike-smith)

 Jun 25, 2014, 4:30:19 PM

## [![Exploring the Need for E&O Insurance for the Financial Sector](https://blog.plrisk.com/hs-fs/hubfs/Imported_Blog_Media/Exploring-the-Need-for-EO-Insurance-for-the-Financial-Sector-300x200.jpg?width=300&height=200&name=Exploring-the-Need-for-EO-Insurance-for-the-Financial-Sector-300x200.jpg)](https://blog.plrisk.com/hubfs/Imported_Blog_Media/Exploring-the-Need-for-EO-Insurance-for-the-Financial-Sector-1.jpg)Exploring the Need for E&O Insurance for the Financial Sector

The financial sector, which includes your accountant clients, tax preparers, and any other financial professionals, is required to be meticulous with data and have a sharp eye for errors. Making a mistake with one of their customers’ accounts could be detrimental not only to that individual, but also to your client, who can be held liable in a costly legal claim.

Of course, everybody makes mistakes. However, for financial professionals, even the smallest error can mean a detrimental loss for their customer. Your financial professional clients *can* protect themselves against a claim of negligence or error, with an appropriate E&O Insurance policy for the financial sector.

Some of the mistakes that a financial professional might make and an E&O Insurance policy will cover include failure of the professional to provide a promised service, real or unintentional professional negligence, incomplete or incorrect work, and any other mistakes or oversights that cause their customers financial harm.

One particular field within the financial industry that is particularly susceptible to E&O risks is that of financial advisors. Essentially serving as a consultant, a financial advisor can’t guarantee the financial success of their professional services. When advice is provided, the financial advisor is required to advise with reasonable care, skill, and diligence and will be held to an objective standard similar to other professional advisors. Due to this, claims of wrongdoing against financial advisors are fairly common. These claims may include:

- Breach of contract
- Negligence
- Breach of Fiduciary Duty

No matter what role your client holds in the financial sector, it’s vital that they have adequate protection for their own business and finances. An [Errors and Omissions](http://www.plrisk.com/products/errors-omissions) policy from [PLRisk Advisors](http://www.plrisk.com/) provides your clients with coverage that contribute toward legal defense costs, damage awards, and settlements. Please contact us to learn more at **(855) 403-5982. **

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