Posted on March 12, 2010.
Understanding & O What is errors and omissions insurance?
To understand errors and omissions insurance (E & O insurance) coverage, you can also be considered "professional liability" or "malpractice" insurance. Errors and Omissions Insurance is a policy that offers coverage for a claim arising from your professional advice or service. If there is a complaint against you for the services provided or services you did not provide that resulted in an error (or omission) that you have made or that the client has seen that you've done you can watch on your errors and omissions insurance assistance. Most errors and omissions insurance policies cover judgments, settlement and defense costs. Even if the allegations were deemed unfounded, thousands of dollars may be needed to defend the lawsuit.
You may already have traditional commercial liability insurance, but you are always vulnerable to allegations of misconduct? Professional liability related to an error or omission is not covered by general liability insurance.
Who needs Errors and Omissions Insurance?
Professionals who need insurance for errors and omissions are doctors, lawyers, engineers, accountants, chiropractors, etc., but if you work with clients in all areas of consulting, services, design or sales, you are risk. There are hundreds of companies that fall into this category and the range of real estate and home inspectors, wedding planners, web designers advertising agencies, appraisers and financial services.
When buying insurance errors and omissions?
The best time to buy Errors and Omissions Insurance is before you need it. Let's face it, everyone makes mistakes. Your business can not afford to be at risk for a potential. You can have peace of mind knowing that you will be compensated if there is an error or omission of a client. Each company is different in their services and business practices. Expect that each Errors and Omissions Insurance policy will be tailored to your specific needs. Make sure that the wording of your policy is the potential exposure of your business.
A better understanding of errors and omissions insurance will help you make an intelligent decision when it comes to protecting your business against financial loss. Knowing that errors and omissions insurance to protect yourself and your business against potential liability claims that might have resulted from an error (or omission) related to a service that you provided you will do better business with confidence .
