Mistakes happen. But even an innocent error could lead to a client bringing a lawsuit against you for negligence. Errors and Omissions Liability policy can help you and your company pays for legal judgments or settlements. It also covers defense costs, which can be substantial even if you're not found liable.
What is Error & Omissions Insurance?
Losses resulting from personal injury, property damage, or advertising injury are covered by business liability insurance. What occurs if a printer fails to see a typographical issue on a sizable order of engraved wedding invitations? Or when a plumbing repair goes wrong and floods a whole office? Errors and Omissions insurance can be helpful in this situation.
A type of specialized liability protection against damages not covered by conventional liability insurance is E&O insurance. It shields you and your company from liability if a client files a lawsuit over careless actions, mistakes, or omissions made while conducting business that causes a monetary loss.
Errors and omissions insurance only help cover claims if:
It's filed within your policy period or the extended reporting period
The incident occurred on or after your retroactive date
According to the retroactive date, incidents occurring on or after a specific date in your policy are covered. The extended reporting period aids in covering claims made within a particular frame of time following the termination of your insurance.
Why is Error & Omissions Insurance important?
Without errors and omissions, insurance and liability claims can be so expensive that they could put your business at risk of closing. Even if your customer drops their claim, your legal expenses could still be thousands of dollars. And if you're found at fault or agree to settle the claim out of court, you can expect to pay a hefty amount out of pocket.
That's why protecting your business with errors and omissions coverage is essential. E&O insurance is typically customized to meet the specific needs of a company or industry. We can help you find the right coverage. Contact us today to know more!
Already have Error & Omission Insurance? Switching is easy
It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options
If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.
Contact us today to help you with multiple options to choose from.