Hey there! Do you ever make mistakes? Of course, you do! We’re all human, and errors are bound to happen. However, as unfortunate as it may sound, some mistakes can cost you a lot of money, especially if you’re in a profession where your clients rely on your expertise.
This is where Errors and Omissions Insurance comes into play, also known as E&O insurance or professional liability coverage. This type of insurance is designed to protect you from lawsuits of employee injuries arising from mistakes or negligence made during the course of your work.
What Is E & O Insurance?
Errors and Omissions Insurance is a type of liability insurance that provides coverage to business owners who offer advice or professional service to clients. This can include anyone from doctors and lawyers to real estate agents and consultants. E&O insurance covers legal costs and damages if a client sues you for negligence, errors, or omissions in your work.
Why Do I Need Errors and Omissions Insurance?
You might be thinking, “I’m not perfect, but I’m pretty good at what I do. Why would I need Errors and Omissions Insurance?” Well, the truth is that mistakes can happen to anyone, no matter how experienced or knowledgeable they are.
Moreover, even if you’re not at fault, the cost of defending yourself against a lawsuit can be astronomical. Errors and Omissions Insurance can help cover these costs and provide you with peace of mind knowing that you’re protected.
Risks Of Not Having Coverage
Without Errors and Omissions Insurance, you’re essentially leaving yourself open to potentially crippling lawsuits. If a client is dissatisfied with your work and decides to sue you, you could be on the hook for not only the legal fees but also any damages awarded.
Industries That Typically Need Coverage
While E&O insurance can benefit professionals in any industry, some professions are more likely to require it than others. These include healthcare providers, lawyers, accountants, financial advisors, and technology professionals.
Claims Process
If a client decides to sue you, the first thing you should do is contact your Error and Omissions Insurance provider. They will assign an adjuster to your case, who will work with you and your legal team to build a defense.
Coverage Limits
E&O insurance policies typically have limits on the amount of coverage they provide. It’s important to choose a policy with a limit that is high enough to cover your potential liability.
Policy Types
There are two main types of insurance policies: claims-made and occurrence policies. Claims-made policies cover claims made during the policy period, while occurrence policies cover claims that arise from incidents that occurred during the policy period, regardless of when the claim is made.
How To Choose the Right Errors and Omissions Insurance Policy
Choosing the right Error and Omissions Insurance can be overwhelming, but it doesn’t have to be. Give BIGinsurance a call or message us on our site and we can help you with the process. Here are some tips to help you choose the right policy:
Assessing Your Coverage Needs
While selecting an E&O insurance policy, take into account your industry, level of risk, and budget. Get a feel of your possible liabilities as well; this will assist you decide how much insurance you require.
Comparing Policies and Providers
Don’t just go with the first policy you come across. Shop around and compare policies and providers to ensure that you’re getting the best coverage at the best price.
Cost of Errors & Omissions Insurance
When choosing an E&O insurance policy, it’s crucial to take your budget into account even though it shouldn’t be the only one. Keep in mind that the price of your policy will vary depending on your industry, amount of risk, and coverage options.
Conclusion
In conclusion, mistakes happen, and it’s important to protect yourself and your business from the financial fallout that can result. E&O insurance can provide you with the coverage you need to defend yourself against claims of negligence, errors, or omissions in your work. This type of insurance is important along with having a well covered business insurance policy.
So, don’t wait until it’s too late. Get yourself some Errors and Omissions Coverage and enjoy the peace of mind that comes with knowing you’re protected. And remember, no one’s perfect, but with E&O insurance, you can be covered. Contact us at biginsurance.com for more details.
Frequently Asked Questions About Errors & Omissions Insurance
What Is the Difference Between Errors and Omissions Coverage And General Liability Insurance?
While both types of insurance provide liability coverage, Errors and Omissions Insurance specifically covers claims related to work services, while general liability insurance covers claims related to bodily injury or property damage.
Can I Be Sued Even If I Didn’t Make a Mistake?
Yes, you can still be sued even if you didn’t make a mistake. Errors and Omissions Insurance can help cover the legal costs associated with defending yourself against such claims.
Is Errors And Omissions Insurance Mandatory?
E&O insurance is not mandatory in most industries, but it is highly recommended for anyone who offers professional services or advice to clients.
How Do I File a Claim Under My Errors And Omissions Insurance?
If a claim is made against you, the first thing you should do is contact your E&O insurance provider. They will assign an adjuster to your case, who will work with you and your legal team to build a defense.
What Is a Retroactive Date In Errors And Omissions Insurance?
A retroactive date is the date from which your Errors and Omissions Coverage policy begins covering claims. This means that any claims made against you for work performed before the retroactive date will not be covered by your policy.
How Long Does Errors And Omissions Insurance Coverage Last?
E&O insurance policies can have different durations depending on the provider and the policy type. Some policies may have a set end date, while others may be renewed annually.
Can Errors And Omissions Insurance Be Cancelled?
Yes, E&O insurance policies can be cancelled by either the insured or the insurer. However, cancelling a policy before the end of its term may result in penalties or legal fees.
What Happens If I Don’t Have Errors And Omissions Insurance?
Without E&O insurance, you’re essentially leaving yourself open to potentially crippling lawsuits. If a client is dissatisfied with your work and decides to sue you, you could be on the hook for not only the legal fees but also any damages awarded.
Does Errors And Omissions Insurance Cover Intentional Acts Of Wrongdoing?
No, Errors and Om insurance does not cover intentional acts of wrongdoing. If you intentionally harm a client or engage in fraudulent behavior, your business policy will not provide coverage.
Can I Add Additional Insureds To My Errors And Omissions Insurance?
Yes, you can add additional insureds to your Errors and Omissions Insurance. This may be necessary if you work with subcontractors or other professionals who may be liable for claims made against you.
What Is the Difference Between Claims-made and Occurrence-based Errors & Omissions Insurance Policies?
Claims-made E&O insurance policies provide coverage for claims made during the policy period, while occurrence-based policies cover claims that arise from incidents that occurred during the policy period, regardless of when the claim is made.