Professional Liability/Errors & Omimissions

Professional Liability/E&O Liability

If you own and operate a business that specializes in professional services that charge a fee, such as:

  • Real Estate
  • Insurance
  • Farm Insurance
  • Consulting
  • Banking
  • Accounting
  • Engineering
  • Law
  • Chiropractic Work
  • HVAC Installation
  • Electrician Work
  • Plumbing
  • Contracting
  • And more…

…then it’s important that your business carries Errors and Omissions Insurance. E&O Insurance is also referred to as Malpractice Insurance or Professional Liability in some cases.

Why Errors and Omissions Insurance is so Important:

It doesn’t matter how professional your staff and procedures may be, or how well they have been trained in their area of expertise. Accidents do happen. E&O Insurance covers your business for acts failure to perform and/or accusations of negligence on behalf of you as a business owner, or your staff. This also means service that is not done correctly or is not done within a required time frame.

A good example of this, is if an architect mis-draws a small piece of a corporate building that later reveals itself as a collapsed portion of the building. Another great example is if a freight shipping company sends a skid of products to South Africa instead of South America. Should that client lose a sale, they will come back to your business to regain their loss. In either of these cases, who will pay for that particular loss? If E&O Insurance is not in place, it’s up to you and your business to hand over the cash.

A business like yours, that falls within the area of ‘professional services’ can be sued even if your team members haven’t made any mistakes at all. Even in a case that is not proven fault, defense costs add up.

What is Covered under E&O Insurance?

Your policy for Errors and Omissions Insurance may include items to protect your business such as:

  • Copywrite infringement(s)
  • Claims arising from services past
  • Errors worldwide
  • Slander or libel (personal injury)
  • Actual or alleged negligence
  • Defense costs

Errors and Omissions policies will usually cover not only the business owner, but also subcontractors, hourly and salaried employees. Even if claims are found to be unwarranted and are only alleged, defense fees can add up in a hurry. This can often cause financial hardship, especially in the case that a business is small, with a limited amount of cash for expenditures. E&O protects your business and workers by paying for courts costs and attorney fees, so that you can continue running your company with less stress on your bank account.

Policies will vary between companies, so it’s important to talk to your insurance agent to determine what the risks and exposures for your particular business might be. To connect with one of our agents now, and talk about your business and what E&O policy would best fit your practices, call: 480.941.7979 today!