Miscellaneous Errors and Omissions
Our E&O Insurance Policies are Customized Business Insurance Solutions
Errors and Omissions (E&O) Insurance Policies are often referred to as Professional Liability Insurance. They protect you and your company against real or perceived errors or mistakes in your work.
Essentially, E&O Insurance protects you when your customer or client accuses you of mistakes or oversights, careless conduct, breach of contract, or incomplete work or substandard work.
Even if these claims are completely unfounded and you never made a mistake, you can still be sued. Therefore, having E & O Insurance just isn’t an option. It’s a must-have for any business owner.
Why Do I Need to Have an E&O Insurance Policy?
When a customer of client decides to get a lawyer involved in a dispute, it quickly becomes expensive. Even if you have done absolutely nothing wrong, you will have to get your own lawyer to protect yourself and your business. You will quickly be looking at least a few thousand dollars in costs. If litigation drags on, those costs add up quickly.
Errors and Omissions Insurance coverage can help pay for lawsuit expenses, which may include:
- Lawyer fees. Lawyers generally charge by the hour and these hours quickly add up.
- Court costs. Filing documents with the court or using a court reporter at a deposition comes with a substantial fee.
- Administrative costs. Lawsuits involve lots of sharing of documents for lawyers to examine. That means shipping, processing, software, and photocopy charges.
- Settlements. Most lawsuits settle out of court to save both parties money, but you may still have to pay the plaintiff, depending on what your lawyer recommends.
- Judgments. If you go to trial and lose, you must pay a court judgment or risk a judgment lien being placed on your business assets.
Which Type of Professional Liability Insurance is Right for Me?
Each Errors & Omissions policy differs based on the company’s needs, priorities, and risk profile. Different policies offer different coverage.
- Policies may or may not offer coverage for certain risks, such as cyber liability, intellectual property claims, or regulatory infractions.
- The liability limits might differ from one policy to the next.
- Deductible levels might vary significantly.
- Some policies might exclude certain coverage, such as punitive damages.
In order to determine what type and level of coverage you need, we begin by sitting down with you to learn more about your business and your clientele. This is the first step we take in formulating an Errors and Omissions Insurance policy that will best protect you.
Who Needs to Have Professional Liability Insurance?
If you are in any profession where you advise a client or customer, you need E&O Insurance coverage.
Lawyers, accountants, architects, engineers, painters, consultants, and insurance agents or brokers are some of the most common carriers of Professional Liability Insurance.
When you are providing a service for another person, there is always the chance they will become upset with your work. Even with no proof of your mistake or breach, they can begin the process of litigation. Just one lawsuit can be the end of your business.
Do not take that risk.
What is Not Covered By Errors and Omissions Policies?
While E&O Insurance Policies protect you from a lot of unintended errors and their negative consequences, some things are not covered by Professional Liability Insurance.
Errors and Omissions Insurance doesn’t cover:
- Intentional wrongdoing or harm. Intentional deception, fraud, and other harmful actives are not covered.
- Illegal acts. If you participate in any type of illegal activity, no level of E&O insurance will help you get out of your mess.
- General liabilities. If someone gets injured at your business, you will need General Liability Insurance to handle these disputes.
- Employee injuries. Workers’ Compensation Insurance is responsible for handling these types of claims.
- Employee lawsuits. If a disgruntled employee chooses to file a lawsuit against you, Employment Practice Liability Insurance will be needed to cover these costs.
- Property damage. You will need Property Insurance to address any property damage claims brought against you or your business.