Even if you’re a seasoned pro at the top of your game, you’re still human (we’re assuming), and being human comes with the unfortunate reality of making mistakes.
If you work in a field that offers services or advice to others, these inevitable mistakes come with much higher consequences, not only to you, but also to your reputation.
Thankfully, there’s coverage that can help you keep a tight grip on your street cred if anything goes sour. Our independent agents have the lowdown on E&O insurance and can walk you through top options so you can find the best policy for you and your piggy bank.
What Is Errors and Omissions Insurance?
E&O insurance, aka professional liability insurance, is a type of liability insurance that will help pay for any damages a professional error may cause. Damages are typically costs affiliated with claims made by a client for things like negligence, misrepresentation, and inaccurate advice, among others.
What Are the Benefits of Errors and Omissions Insurance?
Sometimes advice or services don’t go as planned, and those errors could spell disaster for all the parties involved. E&O coverage is there to help keep your business afloat if faced with a potentially bank-breaking lawsuit.
Who Needs Errors and Omissions Insurance?
E&O insurance is not mandatory, but it could be argued that it’s vital to the survival of certain professions. These include anything that involves providing advice or a service and extend across a number of industries.
Examples of those who would need errors and omissions Insurance:
- Medical professionals: If a plastic surgeon has an off day and accidentally puts in butt implants instead of calf implants, the patient can file a negligence claim against them. This insurance can help to pay any costs involved in fixing the error as well as legal expenses.
- Lawyers and legal professionals: Human errors in law sometimes equate to innocents going to prison and sometimes involve more life-or-death consequences. In order to avoid any business-ending misrepresentation or negligence claims, lawyers and law firms both typically have E&O insurance. It helps to cover anything they may miss due to having normal human brains.
- Engineers and architects: Bridge or building collapses do not sit well with the general public, and someone will come under heavy fire. Most likely it won’t be a slap on the wrist, so E&O coverage will help protect these professionals against some of the heavier monetary consequences.
There are also professions with less life-or-death scenarios. Insurance agents and accountants could make mistakes that cost their clients big stacks of cash. Any businesses with an inherent risk of human error should consider getting E&O insurance, simply for peace of mind.
What Does Errors and Omissions Insurance Cover?
If a business or person commits a wrongful act, E&O insurance pays for the sums those professionals are legally obligated to pay because of the error.
It will generally pay for:
- Legal expenses generated by a court case.
- Monetary damages or settlements awarded to the plaintiff.
What it won’t pay for is a tad more complex. Here are a few instances to familiarize yourself with, just in case you have any big plans for getting sued in the future.
It won’t pay:
- For any fines accrued by the professional.
- If the state or federal government is involved for criminal charges.
- If the negligence is covered somewhere else with another insurance policy.
How Much Does Errors and Omissions Insurance Cost?
E&O insurance can cost anywhere from a couple thousand to hundreds of thousands of dollars. What it costs is mainly based on the revenue of the agency or individual who wants coverage. Other factors can include location, materials used, and other inherent risks.
The Benefits of an Independent Agent
Insurance shopping can be made easy with help from an independent insurance agent. They find and compare E&O insurance quotes from multiple carriers for you. They break down the nitty-gritty in human terms so you can feel positive about finding the best coverage for your business, your budget, and your customers.
Comparing Errors and Omissions Insurance Quotes
Our independent agents will review the needs of your business to find the E&O insurance that makes sense for you. They find information about policies and quotes from multiple insurance companies so your peace of mind about the right protection is guaranteed.