Errors and Omissions
Errors and omissions insurance is a unique type of insurance coverage that all businesses should consider carrying. It protects you from a very unique but very possible legal situation that could otherwise be financially devastating. This insurance is crucial for safeguarding your business against claims of negligence, mistakes, or inadequate work. By having this coverage, you ensure that your company can withstand potential legal battles and financial losses that may arise from unintentional errors in the services you provide.
Who Needs It?
Do all businesses need professional liability insurance? Not necessarily. Typically, errors and omissions insurance is recommended for any business that provides a knowledge-based service and or professional advice or guidance. This includes things like bookkeeping, consultants, recruiters, law firms, engineers, etc.
What is Errors and Omissions Insurance?
Also known as professional liability insurance, errors and omissions insurance offers a unique form of financial protection. If someone comes to you with a claim that your professional advice and/or services caused them financial harm in some way – this is what errors and omissions insurance coverage is for.
For example, let’s say you have your accountant file your taxes and they make a mistake. If the mistake results in you not paying what you owe, you’re ultimately responsible. In this case, you can pursue legal action against your accountant as their mistake may cost you money. This is where the accountant may want professional liability insurance!
Whether their claim is accurate or not, a lawsuit like this can quickly become quite costly.
Benefits of Errors and Omissions Insurance
In addition to covering potential legal fees caused by negligence, there are other benefits to carrying an errors and omissions insurance policy:
- Stand out from the competition. This insurance offers potential customers an extra layer of security.
- Mitigation services. Your insurer will help manage and respond to claims and guide you through the litigation process, should it come to that.
- Fulfill contracts. Many times, you’ll find this type of insurance policy is required to start a contract with a corporate customer.
Protect Yourself Today
If you’re in one of the above-mentioned industries, it’s smart to carry errors and omissions insurance. If you need some help getting insured and want the best rate for your business, get in touch today and we’ll get you protected in no time!
