Errors and omissions insurance, or professional liability insurance, protects service-providing businesses when they are sued for negligence or failing to supply the proper service. The insurance covers the costs of defending a claim in court as well as damages awarded to clients.
What Does the Insurance Cover?
E&O insurance provides coverage for:
- Alleged or actual negligence
- Personal injuries
- Defense costs
Policies do not typically cover bodily injury, property damage, or fraudulent acts. There are other forms of insurance that provide such coverage, and you should speak to an insurance company if you are looking for a particular type of protection.
Why Should You Have Insurance?
If you operate a service-providing business and do not have errors and omissions insurance, you are placing yourself in a vulnerable position. It is essential for you to acquire insurance before a claim arises. Civil lawsuits are costly matters, and they have the potential to harm your business financially. Clients could sue you for negligence, misrepresentation, or inaccurate advice. Claims can arise at any time, and it is important to keep your business financially protected.
Contact an insurance company if you have yet to acquire errors and omissions insurance. Insurance agents can help you craft a policy that provides comprehensive protection to your business. No matter whether you operate a medical practice or construction company, E&O insurance is a valuable form of security to possess.