In today’s litigious society, making sure that your business is adequately protected by carrying the right types and amounts of insurance coverage is more important than ever. In areas of professional liability such as Errors & Omissions (E&O) coverage, this is particularly true. By understanding some of the factors that impact your E&O insurance cost, you will be in a better position to make changes that can lead to lower premiums.
At its most basic, E&O, a type of professional liability insurance, covers your business for any inadvertent mistakes that you or your employees make while providing services to your clients that result in causing them financial harm. Your policy also provides liability coverage for omissions or actions that you should have taken but did not, and that also lead to financial harm for your client. Your policy limits will include defense costs and damage awards when a claim for negligence is made by one of your clients.
Key Factors That Determine E&O Insurance Cost
In today’s litigious society, making sure that your business is adequately protected by carrying the right types and amounts of insurance coverage is more important than ever. In areas of professional liability such as Errors & Omissions coverage.
How is E&O Insurance Cost Calculated?
There are a number of factors that will affect your premium. Some of the most common are:
- Size of your business
- Your area of specialization
- The mix of business that you handle
How to Reduce E&O Premiums
Taking some simple steps can help to lower your E&O insurance cost. Make sure that your professional staff is licensed and up to date on requirements in your field. Stay within the scope of your expertise. Provide your staff with written customer service guidelines. Keep paper trails of all transactions with your clients. You can also lower your premium by accepting a higher deductible. Choose a licensed insurance agency that specializes in E&O insurance and who has established relationships with quality insurance carriers. This will ensure that you get the best rates possible.