As you may know, business liability insurance covers losses related to bodily injury, property damage or advertising injury. But what happens and who pays when a printer neglects to catch a typographical error on a large order of engraved wedding invitations? Or when a plumbing repair fails and causes an entire office to be flooded?
Issues like these can be resolved with the purchase of errors and omissions (E&O) insurance, also referred to as professional liability insurance. Errors and omissions insurance is a kind of specialized liability protection against losses not covered by traditional liability insurance. It protects you and your business from claims if a client sues for negligent acts, errors or omissions committed during business activity that results in a financial loss for the client.
Costly mistakes can happen even to people with the best training and years of experience. That’s why errors and omissions insurance is so important. It helps protect your business from claims generally not covered by your general liability policy.
Who Needs E&O Insurance?
Are you in a business providing a service to clients for a fee? If so, errors and omissions coverage is for you. These kinds of insurance policies usually cover the business owner, both salaried and hourly employees, and subcontractors working on behalf of the business. Each E&O insurance policy is typically customized to meet specific needs of a business or industry. For example, educators have different risks than a telemarketing firm does in a standard business day. Both have the need for liability insurance, yet each needs a completely different type of coverage. Here is a list of some eligible business types that will benefit from an E&O policy:
- Accounting & Auditing Service Firms
- Advertising Agencies
- Barber & Beauty Schools and Shops
- Condominium Associations
- Consultants such as Business, Management or Wedding
- Copying & Duplicating Services
- Dental Laboratories
- Embroidery Operations
- Graphic Artists & Designers
- Interior Decorators
- Optical Goods
- Pastoral Counselors
- Pet Groomers
- Public Speakers
- Stenographic & Secretarial Service Companies
- Tax Preparers & Bookkeepers
- Technology Firms
- Telemarketing Firms
What Type Should I Buy?
Errors and omissions insurance policies vary from company to company, and are written to reflect inherent risks and common exposures particular to different types of business. For best results, let us your broker in Southern California find the correct company for you. Call us now at 1-800-640-4743 with any insurance question you may have and for a FREE quote! You can also Click Here to request your quote online. One of your licensed insurance agent will respond to you within one business day.