Does Your Company Need Errors and Omissions (E & O) Insurance?
Posted by pabusiness on June 18, 2008
If you consult, provide services to others, or sell for others, you should purchase professional insurance. This tailored insurance may help protect you from a potential claim arising from your professional advice or service. In your type of business, a client can hold you responsible for errors or failure in your work. The insurance that best meets your need is called professional liability insurance, malpractice insurance, directors and officers insurance (D&O) or errors and omissions (E & O) insurance.
E & O coverage offers you or your company and your employees’ additional protection against claims or lawsuits for mistakes or omissions which may have caused financial losses for your client. The insurance can be written to protect you from attorney fees as well as the amount of a settlement if you are found at fault. Consider the following information about the insurance coverage as it relates to your business:
- Errors & Omissions Insurance can cover W2 employees and 1099 subcontractors, worldwide.
- Many VC’s and other investors require this coverage, including state and federal requirements for licensing and potential jobs.
- This type of coverage is generally excluded by your Commercial General Liability policy, and if there is additional coverage for this exposure it may have limitations that you may not be aware of.
The following businesses should consider E & O insurance:
- Real Estate and Home Inspection
- Consultants
- Advertising
- Web, Internet Providers, Programmers, and Graphic Designers
- Appraisers
- Florists
- Building Contractors including Janitorial or Building Operations
- Financial services
- Professional services, including attorneys, dentists, doctors and chiropractors
- Educational Services, K-12 Schools, Universities, Private Post Secondary Education, and Vocational Schools or Technical Schools.
The cost of each E & O Insurance contract varies with its specifics. Read More…..
