Find Out if you Need Errors and Omissions Insurance
Professionals who have contracts with clients all need insurance to cover them in case something goes wrong and there are financial losses. General liability covers accidents that cause injuries, but Errors and Omissions, or E & O insurance, takes care of financial losses resulting from the services a professional gives a client.
Possible Lines of Work
Sometimes this insurance has different names, all of which cover a professional when a client alleges that a service rendered did not do what it was supposed to, causing economic damage, or that something was left out of a service, which also caused financial damage. Whether it’s called malpractice in the case of doctors, professional liability insurance like engineers carry, or E & O insurance, this type of insurance is a good idea for people in the following career fields:
Why You Might Need It
Everyone makes mistakes, but it’s a poor business plan that allows those mistakes to seriously hurt the business. Illegal activities, of course, are not covered by errors and omissions policies, but it should cover a range of mistakes in the way a contract is written, or the omission of crucial information. For example, a company might not be able to deliver a service or product by a deadline, which costs their client a deal, and thus money in the long run.
E & O policies can pay off in covering some of the following costs:
- Legal consultation
- Court costs
- Lawyer fees
- Judgment of damages
If there is a chance a mistake your firm makes can cost a client money or prevent them from earning money in the future, you are a good candidate for E & O Insurance.