Business Insurance: Errors and Omissions
This month we’re going to dig a little deeper into commercial, or business, insurance. Owning a business comes with many responsibilities including making sure you have the right insurance coverage for the various risks you could encounter. There are several coverages a business needs and should buy that can get confusing. This month’s coverage breakdown is going to be about Errors and Omissions, or E&O coverage.
What is E&O Coverage?
Errors and Omissions insurance is a type of professional liability coverage that is needed by companies, or individuals, that provide professional advice or guidance to their clients. This coverage is needed in case you, or your company, is alleged to have made an error or have given improper advice causing your client to experience a financial loss. It is important to have, not only to reimburse your client for amounts you may legally owe to them, but because most E&O policies cover defense costs as well which can help if a lawsuit is made against you or your company.
Who Needs It?
The range of business owners who can benefit from E&O coverage can range from doctors and lawyers to advertising agencies and wedding planners. To put it simply, anybody who provides a service for a fee has the risk of an E&O exposure. Think about what could happen if a client has paid for a service from you and something goes wrong. Would you have enough money to pay for a potential judgment and defense costs if you’re faced with a lawsuit?
If you have any questions or would like to review your current policy with a licensed insurance agent, call our office at 863-683-2228.