Errors & Omissions Insurance
Errors and omissions (E&O) is insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results. For doctors, dentists, chiropractors, etc., it is often called malpractice insurance. For lawyers, accountants, architects or engineers, it may be called professional liability. Whatever you call it, it covers you for errors (or omissions) that you have made or that the client perceives you have made.
Do I need Errors & Omissions insurance for my business?
The best-known professionals who need E&O insurance are doctors, lawyers, accountants, architects, engineers, realtors, etc. However, less thought about individuals range from advertising agencies to commercial printers, Web hosting companies to wedding planners. If you are in the business of providing a service to your client for a fee, you have an E&O exposure. You may want to consider what will happen if the service is not done correctly or on time, and it costs your client money or harms their reputation.
Why does my company need Errors & Omissions coverage?
To put it very simply, everyone makes mistakes. Even with the best employees and the best risk management practices in place, mistakes will be made. No one is perfect.
By not purchasing E&O insurance a company can be taking a serious financial risk. Even if you are not at fault, litigation is both time consuming and expensive.
To learn more about errors & omissions insurance coverage, please call 406-222-0944.