The so called Errors and Omissions insurance actually bears several different names, it’s also known as:
- Professional Liability Insurance
- Professional Indemnity Insurance
- Malpractice Insurance
In others words it is a type of insurance that goes beyond the scope of regular Liability Insurance. It covers professionals against claims made by clients for inadequate work or negligent action. For no fault of your own, the customer’s perception is enough to start a costly lengthy lawsuit. But in the eventuality that you actually made a mistake, if offers you a protection that may save your business.
Who needs Errors and Omissions insurance ?
There is a very famous Latin phrase that goes : “Errare humanum est” meaning “to err is human”. We all can make mistakes. Errors and Omissions are very important for business owners (big or small).
The rule is simple, if you sell a service for a fee you are subjecting yourself and your business to E&O exposure, therefore you need Errors and Omissions insurance.
As far as Malpractice Insurance goes, we all know that any healthcare professional, doctors, surgeons etc… need it, for obvious reasons but, believe it or not, even Insurance Agents and Insurance Brokers need an Errors and Omissions Insurance Policy.
Why do you need Errors and omissions insurance ?
All business owners need Errors and Omission Insurance for the simple reason that it is the insurance that covers many specific issues not covered by Liability Insurance. For instance, a Liability Insurance Policy will cover bodily injury and property damage where Errors and Omissions Insurance will cover financial loss.
What does Errors and omissions insurance cover ?
Usually but not limited to:
- Alleged or actual negligence
- Slander or Libel
- Attorney fees
- Court costs
Errors and Omissions insurance is one policy you cannot afford not to have, as a business owner. The coverage and the premium varied greatly depending on the type and size of business as well as what you want your deductible to be.
If you sell services and are not yet covered, don’t wait and purchase an Errors and Omissions insurance right now. This is a type of insurance that is time sensitive and if you are not protected at the time the claim – justified or not – is made, the results may be devastating for yourself and your business. For the same reason, never let this policy lapse and keep it up to date for as long as you stay in business.
Hotwire Insurance Services, a full-service independent agency, works for you and not insurance companies and does not charge broker’s fee. They address all your needs and tailor a custom insurance solution. Hotwire Insurance Services local agents can answer all your insurance requests.