Errors and Omissions (E&O) Insurance is a type of professional liability insurance covering businesses against lawsuits and claims for damages arising from errors or omissions in their services or products. E&O Insurance is designed to protect businesses and individuals who provide professional services, advice, or expertise, from legal liabilities resulting from errors or omissions in their work. In this article, we will discuss the benefits of E&O Insurance for all businesses.
Understanding Errors and Omissions (E&O) Insurance
Errors and Omissions (E&O) Insurance is a type of insurance coverage that protects businesses and individuals from legal liabilities resulting from errors or omissions in their work. E&O Insurance is also known as professional liability insurance or malpractice insurance. This type of insurance protects businesses and individuals who provide professional services or expertise from legal liabilities, arising from errors or omissions in their work. Examples: consultants, teachers, lawyers, property managers, stylists, and many others.
What E&O Insurance Covers
E&O Insurance covers a wide range of liabilities that businesses and individuals may face due to perceived issues with their deliverable or completed work. This may include claims of negligence, breach of duty, or misrepresentation, bad judgement, or failure to deliver. E&O Insurance can also cover the costs of legal defense, settlements, and judgments in case of lawsuits and claims for damages. Note: Anything that the policyholder does with knowledge and intent to break the law or commit fraud is NOT covered by an E&O policy, and would remain liable for the error.
Why Small Businesses Need E&O Insurance
Small businesses are more likely to encounter legal liabilities and claims for damages, resulting from errors or omissions in their work, which could seriously jeopardize their existence. Many E&O lawsuits far exceed the cost of services rendered, and without insurance directly tap into your assets. Premiums for E&O insurance consider the type of work and the volume of revenue your business takes in. Businesses that charge high fees for their services or deliver a product that requires very high accuracy, will pay a higher fees for their coverage, and require higher protection levels.
Is E&O Insurance the Same as Liability Insurance?
E&O Insurance is often confused with general liability insurance, designed to protect businesses from liabilities arising from bodily injury, property damage, and advertising injury. While both types of insurance protect against legal liabilities, they cover different types of liabilities. E&O Insurance specifically covers professional liability, while general liability insurance covers other types of liabilities.
In conclusion, Errors and Omissions (E&O) Insurance is a necessary coverage for all businesses that provide professional services, advice, plans, or expertise. E&O Insurance is to protect you when you make an inadvertent mistake, and it causes injury or damage to your client. Small businesses, in particular, need E&O coverage to prevent mistakes from turning into business ending lawsuits. Businesses need to consult with an experienced insurance agent to determine the appropriate level of coverage for their needs.
Get the Best E&O Coverage for Your Needs with Lou Aggetta!
If you are a business owner and are interested in providing a safety shield to your assets with E&O Insurance, our team can help you with proper assistance to fulfill your needs. We have an experienced insurance agent who can help you protect your business. Contact us at Lou Aggetta Insurance Inc. today to learn more about our E&O Insurance solutions.