Errors & Omissions

Errors & Omissions

You will inevitably make a mistake when giving advice or providing services to a client. This will happen even if you are a highly trained and experienced professional with the best of intentions for your clients. Unfortunately, one mistake can ruin your reputation and harm your business.

There are many types of business insurance policies that are available. One type of business insurance is errors and omissions insurance. Errors and omissions insurance can help to financially protect you and your business if things go wrong with the advice and service you provide to your clients.

If a client claims the advice you provided them was negligent, misrepresented, or inaccurate, then they can file a lawsuit against you. If you lose the lawsuit, then your errors and omissions insurance can pay for damages caused by your professional error. This insurance will also pay for your legal expenses. Errors and omissions insurance will not pay for professional fines, negligence that is covered by another insurance policy, or fees relating to state or federal criminal charges.

You are not mandated by state or federal law to have errors and omission insurance. Some companies or professions may require you to have this insurance for your protection. Even if you are not required to have errors and omissions insurance, you should have it if you are in a profession that offers advice and services to individuals and other businesses. Some of the professions that may require you to have errors and omissions insurance include real estate, law, medicine, engineering, architecture, and financial services.

The cost of an errors and omissions policy can vary based on your profession, the inherent risk factors in your profession, and the amount of coverage you are seeking. If you work with a licensed insurance agent, they can help you shop for the best errors and omissions insurance policy for your profession. They will evaluate your needs and find the right policy that fits your budget.