If you own a small business that is geared to providing services to your community, chances are you will need to invest in e & o insurance. While you may have built a comprehensive insurance portfolio including building owners insurance and general liability insurance, many entrepreneurs overlook the importance of errors and omissions policies. Generally referred to as professional liability, an e & o insurance package is designed to cover liability exposures that are excluded under general liability cover. Understand how this inexpensive policy will protect you against financially damaging claims and make a wise investment for the best interest of you and your company.
In todays sue happy society, buying e&o insurance is essential to protect the financial health of your company. Even owners who take proactive steps to ensure business processes are fair and accurate can face lawsuits for negligence that are unfounded. E&O insurance is specialized insurance category that is not required for every professional. Individuals who have obtained advanced education and training to provide services to a state or city should carry errors and omissions insurance. If you are held to a higher standard because of your furthered education, chances are you should be protecting the career you worked so hard to be a part of.
Most errors and omissions policies are designed to cover professional error and negligence that causes the customer financial hardship or loss. Professional errors are weighed on a wide scope. If agents give inaccurate advice, this could be seen as a professional error. On the other hand, if a subcontractor damages a customer’s property when completing a job, this is another form of professional error on a different scope. There is no one-size-fits-all errors and omissions package. You must consult a licensed agent experienced in selling commercial policies of all sorts. These agents will suggest a package that is suitable and comprehensive and will protect all areas of risk you are facing during your business operations.
Most doctors, lawyers, real estate agents, mortgage brokers, insurance agents, and financial services professionals invest in e & o insurance. While these individuals are the common targeted niche, several other professionals dealing in a plethora of industries have a need for this insurance policy. You will need to weigh the costs and benefits of e&o insurance. The annual premium for a professional liability package is well worth the million dollars of coverage it provides for defense costs, judgments and settlements.
There are a variety of insurance providers on the market today offering affordable e&o insurance coverage. When you are comparing insurers, be sure to check their financial rankings and compare the premiums to make the best choice. With the right agent or broker by your side, you will have a comprehensive commercial insurance portfolio.
