Errors and omission insurance is not about your professionalism, training, or years of experience. It’s about human nature. Mistakes happen to the best of us, no matter how experienced.
Yes, you can be sued, even if you didn’t do anything wrong.
The simplest clerical error or proofreading mistake (even one made by a trainee) can cost you, especially if it results in financial loss or damage to the reputation of one of your customers.
That’s why it’s essential to understand the extent of your business liability insurance since it only protects your operation against bodily injury, property damage, or advertising injury.
But what happens when you, one of your employees, or a vendor fails to catch something that your customer doesn’t miss, and they hold you responsible?
They can not only refuse to pay, they may also sue you for damages.
But with an errors and omissions (E&O) insurance policy, you’ll enjoy specialized liability protection against losses not covered by traditional business insurance.
Who needs E&O insurance?
- Wedding planners
- Building-trades contractors
- Advertising agencies
If your service can be done incorrectly or late, costing your client money or harming their reputation, you must investigate E&O.
What does E&O cover?
Errors and omissions protect you from claims in the event a customer or client sues your service business for negligent acts, errors, or omissions occurring during business activities, which could potentially result in a financial loss for the client.
Errors and omissions insurance policies usually cover the business owner, both salaried and hourly employees, and subcontractors working on behalf of the business.
Errors and omissions insurance can be customized to meet your needs, regardless of your business or industry. Real estate agents face different risks than printing companies, but both have the potential to impact their customers’ lives and livelihoods if a mistake occurs.
Benefits of a specialized E&O policy may also include:
- Monthly payment options to help spread out your payments, so you can better manage your cash flow
- Coverage of temporary staff, full-time employees, and independent contractors
- Past work covering unforeseen claims arising from work completed before you were even insured to a pre-agreed date
- Worldwide coverage as long as the claim is filed in the U.S., one of its territories, or Canada
- Claims responsiveness when time is of the essence, especially in the event of an insurance claim
- Tailored coverage for the specific risks of your field and industry
- Knowledgeable agents who provide exceptional, passionate service
- Coverage for contracts satisfying most standard contract insurance requirements
While most insurance products are similar in price and function, insurance providers are very different when structuring a policy that covers you.
We’re your neighbors. We protect businesses and people we know and care about. That means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.