As a professional, you take pride in providing the best services possible. But what happens when your advice or professional service harms another person? Or what happens if one of your customers claims that your product harmed them? If this happens, you’re going to want to have an Errors and Omissions Insurance policy in place. E & O insurance, or professional liability insurance as it’s more commonly called, protects your company from claims if a client holds you responsible for errors or for failing to perform duties as outlined by your contract.
How Much Does E & O Insurance Cost?
Errors and omissions insurance varies depending on the sate you live in, the profession you’re in, the number of professional who work with you and much more. The cost will be determined by your business insurance provider, who will need to take a close look at your profession, as well as who you do business with on a regular basis, and only then will the provider be able to draw up an estimate that encompasses the coverage you need.
What Does E & O Insurance Provide?
When you secure an errors and omissions insurance policy, you will be able to afford your legal fees, such as court costs, judgments against you and more. If you need to pay a settlement to the plaintiff, this type of insurance will help with that as well.
Who Needs E & O Insurance?
All professionals should secure errors and omissions insurance because all client interactions carry with them some type of risk. You may not even be aware of any dissatisfaction until you’re served with papers. This means you need to make sure your business insurance package contains all the usual policies along with errors and omissions insurance, to make sure you’re covered from every angle.
Most businesses purchase the usual business insurance, which includes health insurance, workers’ compensation, general liability and property insurance, to name a few. But many professionals don’t even consider E & O insurance, and that is a major mistake. Many business owners are under the false assumption that general liability insurance will protect them in any case where they are found liable. But that’s not true. E & O insurance will protect you against far different cases, and the claims brought against errors and omissions insurance are oftentimes very expensive.
Therefore, when speaking with your insurance provider, make sure you ask about errors and omissions insurance. If you’re about to launch a product or you work with clients and customers, you are playing with fire if you don’t have an Liability Insurance in your portfolio. And if you have all the other types of business insurance, and you’ve still skipped over the E & O, you’re making the same mistake countless other business owners are making. Don’t let your business go under because of a claim that could have been weathered simply by having the proper errors and omissions insurance policy in place.
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