E & O Insurance
What is E&O Insurance?
Errors and omissions insurance, also known as professional liability insurance, protects individuals and businesses from claims of negligence that are filed as a result of services they provided or failed to provide. If a client believes you made a mistake that caused them financial harm, you can be held responsible.
Damages associated with negligence claims are not covered by general liability or business owners’ insurance policies. E&O insurance can help protect you from expensive legal bills and damages that are awarded as a result of a professional liability claim filed against you.
Who Needs E&O Insurance?
Any individual or business that provides a professional service to their clients, such as real estate appraisers, home inspectors, accountants, doctors, lawyers, and other professionals are susceptible to an E&O claim and should consider an errors and omissions policy an essential part of their business insurance needs.
Why Do You Need E&O Insurance?
The cost to defend a professional liability claim can run in the thousands of dollars even if it is eventually dismissed. If the claim is not dismissed and you are found responsible, you may also have to pay for damages awarded to your client.
If you do not have errors and omissions insurance, you will have to cover all of these costs on your own. The financial impact of such a claim to an individual or business can be devastating. Don’t let yourself or your business become financially vulnerable. E&O insurance can safeguard you from the costs associated with this type of claim.
How Much Does E&O Insurance Cost?
There is no single E&O insurance solution that works for everyone, which means there is no standard price for errors and omissions insurance. Each policy must be customized based on the services provided by the individual or business that is applying for coverage.
In general, the cost of a policy ranges from a few hundred to a few thousand dollars and is influenced by a variety of factors including the insurance provider, the coverage limits specified under the policy, the deductible amount, the insured’s profession and the retroactive date of the policy.