If you or your business is responsible for providing a service to a client for a fee, you are at risk of potentially being sued if the client believes that you didn’t deliver the service as promised or that you made an error that caused financial strife for them. Whether or not the client is successful in proving an error or omission, it is essential to have this coverage because legal costs can be extremely high. This coverage can protect you from defense costs and judgments as well as damages or settlements.
The most well-known types of errors and omissions insurance are malpractice insurance and liability insurance. Medical professionals such as doctors, surgeons and chiropractors choose malpractice insurance coverage. On the other hand, business professionals such as accountants, lawyers, architects, and engineers would opt for professional liability insurance.
A wide range of businesses and professional individuals need errors and omissions insurance coverage. It's commonly known that doctors need malpractice insurance coverage, but other types of companies are also at risk of legal action in the event of an error or perceived negligence.
When the services that you or your company offers has the potential to cause financial losses to others, your company needs errors and omissions insurance coverage. Examples of business errors that might result in a lawsuit include:
Just about any business that provides a service to a client that could result in harm or profit loss if anything goes wrong should consider errors and omissions insurance.
Consider the possible errors made by your employees, particularly those who are inexperienced. Your policy can be written to cover you and your business, including employees, independent contractors, and temporary help.
A single lawsuit can destroy your company financially. With the stakes for success being as high as they are, it's essential to have an errors and omissions policy tailored to the requirements of your company. The costs associated with your policy will depend on a variety of factors including the size of your company, the number of employees, and your annual revenue along with the amount of coverage you need and the size of the deductible.
Contact one of our independent agents to see what kinds of error and omissions coverage you may need for your practice.