Hereâ€™s What You Should Know About Errors and Omissions Insurance
Errors and omissions insurance is a form of liability coverage that many businesses need.
Itâ€™s also one of the types of insurance we get the most questions about!
So, to help you get the answers you need, we put this post together.
What is Errors and Omissions Insurance?
Errors and omissions insurance is a special type of liability coverage for businesses.
If youâ€™re found responsible for a clientâ€™s losses due to your own mistake (i.e., an error or omission), errors and omissions insurance can help you cover the damages.
How is Errors and Omissions Insurance Different From Commercial General Liability Insurance?
Errors and omissions insurance is different from commercial general liability because commercial general liability only applies to third-party injuries or property damage â€” not financial losses! But luckily, thatâ€™s why thereâ€™s errors and omissions insurance.
When Will I Need Errors and Omissions Insurance?
Here are a few examples of times where your errors and omissions insurance could be useful:
- If youâ€™re an acupuncturist who accidentally punctures a patientâ€™s lung during a treatment
- If youâ€™re a lawyer who makes an error in a written document for a client that results in the clientâ€™s financial loss
- If youâ€™re a construction manager who makes an error in planning where the water lines go in a restaurant, and the restaurant floods as a result of your mistake
- If youâ€™re a printer who was hired to print a magazine and you accidentally print one of the advertisements upside down
- If youâ€™re a real estate agent who lists a propertyâ€™s size as 4,000 square feet and the purchaser claims it is actually only 3,000 square feet because you included the garage and lawn when you shouldnâ€™t have
Is Errors and Omissions Insurance Expensive?
The cost of your errors and omissions insurance will vary significantly depending on things like your businessâ€™ annual revenue, the nature of your business, and your previous claims.
As you can see, there are all kinds of situations where errors and omissions insurance is useful and why you wonâ€™t want to be caught without it!
Still have questions about errors and omissions insurance? Call us today so we can help!