Errors and omission insurance—more commonly known as professional liability insurance—is protection for businesses that provide professional services from claims of negligence or failure to perform the full scope of professional duties. While most businesses can benefit from an errors and omission policy, industries that benefit the most include legal, insurance, real estate, healthcare, finance, technology and engineering.
The Impact of Good Coverage
Any business that exchanges advice or services for a fee is at risk for being sued for failure to fulfill its professional obligations. Though most business owners strive to provide the level of service their customers expect, legal claims can and do arise despite one’s best efforts to prevent them. When they do, a strong E&O policy can shoulder a majority of the burden, including defense costs and most of the damages or settlements arising out of a single claim.
Standard errors and omission policy covers claims arising from the following:
- Copyright infringement
- Alleged or actual negligence
- Claims arising from services provided in the past
- Personal injury
Depending on the policy, a business can receive more or less coverage than what is standard.
Protect Your Business From Legal Claims
If you are in the business of providing professional services or advice to others, it would be in your best interests to invest in an E&O policy. Talk to your insurance provider to learn more about how you can protect your company from actual and alleged claims today.