Errors & Omissions Insurance
Errors and omissions insurance coverage, also known as professional liability insurance, helps to provide protection for your professional services business from claims of negligence or failing to perform your professional duties.
Professional liability insurance can take the form of various business practices and names depending on the profession. For example, in reference to medical professionals it can also be called malpractice insurance, while errors and omissions (E&O) insurance is used by insurance agents, financial advisors, consultants, brokers, lawyers as well as beauty stylists.
Errors and omissions insurance policies usually cover the business owner, both salaried and hourly employees, as well as subcontractors working on behalf of the business.
Errors and omissions insurance is typically customized to meet specific needs of a business or industry. For example, an IT consultant has different risks than an architect does in a standard business day. Both have the need for liability insurance; however, each needs a completely different form of coverage.
Errors and omissions insurance coverage is thoroughly recommended to protect your business practice from claims alleging negligence from your professional services and consultation including failing in "duty of care" such as giving incorrect advice or making errors. This insurance can follow wherever your business practice takes you. Errors and omissions insurance covers claims arising from work one does anywhere in the world, as long as the claim is filed in the United States, its territories or Canada.
Even if claims are found to be unwarranted, legal fees and other related expenses can cause erosion to cash reserves and capital. Subsequently causing financial hardship to the practice. Most errors and omissions insurance policies cover judgments, attorney fees, court costs and settlements up to the limits of the policy.
Professional liability insurance can take the form of various business practices and names depending on the profession. For example, in reference to medical professionals it can also be called malpractice insurance, while errors and omissions (E&O) insurance is used by insurance agents, financial advisors, consultants, brokers, lawyers as well as beauty stylists.
Errors and omissions insurance policies usually cover the business owner, both salaried and hourly employees, as well as subcontractors working on behalf of the business.
Errors and omissions insurance is typically customized to meet specific needs of a business or industry. For example, an IT consultant has different risks than an architect does in a standard business day. Both have the need for liability insurance; however, each needs a completely different form of coverage.
Errors and omissions insurance coverage is thoroughly recommended to protect your business practice from claims alleging negligence from your professional services and consultation including failing in "duty of care" such as giving incorrect advice or making errors. This insurance can follow wherever your business practice takes you. Errors and omissions insurance covers claims arising from work one does anywhere in the world, as long as the claim is filed in the United States, its territories or Canada.
Even if claims are found to be unwarranted, legal fees and other related expenses can cause erosion to cash reserves and capital. Subsequently causing financial hardship to the practice. Most errors and omissions insurance policies cover judgments, attorney fees, court costs and settlements up to the limits of the policy.