Compare These Top Vendors for Errors & Omissions Insurance

Errors and omissions insurance coverage is a must for any business that offers consulting, services, or advice to buyers. This includes real estate agents, travel professionals, architects and accountants, just to name a few. Errors and omissions insurance is a form of professional liability insurance that covers the cost of legal defense in the event of a client lawsuit against you and your company.

In 2012, statistics showed that 1 out of 7 of every insurance agent will report and EO claim at some point during their career (Tilinghast Survey). When you acquire your business liability insurance coverage, be sure to include an errors and omission policy to cover you in case of:

• A client lawsuit, claiming errors made by your company, resulting in a loss to them.
• A service that was delayed and caused a client financial damages.
• Any business mistake or misunderstanding that results in a loss to the client.

Be sure you’re employees are covered as well with workers’ compensation insurance from a Business.com vendor.

Finding the Right Insurance Agent

Errors and omissions insurance coverage is sold through commercial insurance companies and independent agents that specialize in such coverage. It’s a good idea to get quotes from a few different agents or companies and choose one whom you are comfortable working with, or one who has experience working with your type of company.

Some questions to ask before making your decision:

• Have you worked within this industry before?
• Will we have a dedicated agent?
• Is there an online portal we can use to manage our options?

Deciding on the Right E&O Coverage

Errors and omissions coverage varies to suit a wide range of industries. Types of coverage and premiums depend on your business, the risk exposure involved, your business location, the number of employees and other factors. A good business insurance agent or insurance company can help you make sense of all of your options and make sure you are completely covered.

• Have a professional look through your contract before signing anything; consider asking your lawyer or accountant.

Adopt Good Business Practices to Avoid E&O Claims

Good business practices, such as putting all client contracts and communications in writing and structuring a business plan that identifies and incorporates specific business exposures, will help ensure that your business has few, if any, E&O claims. In addition to keeping your clients happy, having few claims can award you a lower insurance quote.

• Remember to review your business E&O insurance policy requirements periodically. Your coverage will need to be updated as your business and assets grow.

• As your business grows, consider hiring a corporate attorney to assist you in developing good business practices to guard against product or service liability issues and offer sound advice for errors and omissions claims.

Everyone makes mistakes, so E&O insurance is a necessity for any business based around consultation. However, client lawsuits and judgments can damage or even bankrupt a small business, when taking to account that the average cost per settled claim is in excess of $16,000. Errors and omissions business protects your practice if you for one reason or another fail to work or perform as promised in your contract.

If you are interested in errors and omissions insurance, you may also want to consider purchasing liability insurance from one of our qualified vendors.