As a professional, you take pride in providing the absolute best services. But what happens when your advice or professional service harms someone else? Or what if someone claims that you harmed them in some way? 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. To determine the cost, your business insurance provider will examine your business and the services you provide, along with all the other factors, and will then come up with a package just for you.
What Do You Get?
Errors & Omissions Insurance will provide you adequately defend yourself against claims brought against your professional services by helping you cover legal costs, such as court fees, lawyer fees and also judgments against you. If you need to pay out a settlement, the insurance will help you with that as well.
Who Requires 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. Therefore, when you are securing your regular business insurance package you should always ask your insurance provider to add E & O insurance to the coverage you're purchasing.
Most business owners purchase business packages that contain the usual policies, such as property insurance, general liability insurance and life insurance, to name a few. But many business owners don't even consider that errors and omissions insurance is an absolute necessity, and that's a 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've purchased a business insurance package without errors and omissions insurance, you are making a big mistake that you may pay for later on. Make your business claim-proof by securing errors and omissions insurance, as you never know when your services may land you in trouble.
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