What are the differences and similarities between Negligent Advice and Errors & Omissions?


Errors & Omissions

Negligent Advice


  • Covers negligence in the conduct of the Insured’s professional activities


  • Covers wrongful advice given in promoting the Insured’s products or services


  • E.g. A lawyer gets sued for giving bad advice to a client.
  • E.g. A pharmacist gives free advice on which medicine to use. He is sued when a patient is injured by the wrong medicine.


  • Covers mainly pure economic loss. Injury and most physical damage is excluded.
  • Only covers claims for damage or injury and does not cover pure economic loss.


  • Excludes liability arising out of products
  • Focuses on the Insured’s products and services


  • Provides cover for liability arising out of professional advice
  • There is no cover for claims arising out of advice for which a fee was charged
General Liability