Errors and Omissions Insurance
Anyone can make a mistake; fail to complete a transaction, miss a deadline, or simply make a bookkeeping error. For this reason, even the most conscientious professionals and companies become defendants in expensive and protracted legal battles. As a professional in the service industry, you have E&O exposure and need to protect your assets.
What is errors and omissions insurance?
Errors and Omissions insurance safeguards you, or your business, in the event that a client holds you responsible for advice or services that you provided, or failed to provide. Even if a claim has no grounds, a perceived error could accrue legal fees into the thousands. Loss of wages. Defense costs. Attorney's fees. Judgments and settlements. The risks are high, the costs higher. E&O coverage is comprehensive and gives you the protection you need.
Who needs errors and omissions insurance coverage?
Any professional who provides services to client for a fee, faces financial risk. E&O insurance is the form of "professional liability coverage" most often used by agents, brokers, consultants, etc- those professionals often dealing with financial transactions. Some industries or states mandate coverage for individuals in select careers.
When should you buy E&O insurance?
In today’s business climate, obtaining real estate E&O insurance or whatever form of professional liability insurance best suits your individual situation is a necessity. Although it is tempting to put off investing in this coverage, procrastinating could deprive you of the protection and benefits you need during a time of vulnerability, stress, and financial insecurity. Therefore, it is in your best interest to investigate your errors and omissions insurance options today.
Why your general liability policy is not enough...
For service professionals, an E&O insurance policy is the only way to assure that you are sufficiently covered. Most general liability or commercial liability policies don't provide the comprehensive coverage you need. While these policies may cover "bodily injury" or "property damage," the unique risks of the service professional- and the financial losses experienced by your clients, do not fit into those definitions.