Private Investigators Liability Insurance

Also known as Errors and Omission (E&O) insurance, this protects against lawsuits against you against mistakes and errors. For example, let's say a private investigator is hired by a large company to conduct multiple background checks and mistakenly overlooks negative marks on several potential employees. The company hires these individuals, then learns of the mistakes and fires them after putting them through the expense of training. The company then sues the private investigator for his mistake. Private investigator insurance would cover defense costs as well as any settlements or judgments ruled in the plaintiff's favor.