A Basic Understanding Of E&O Insurance
A Basic Understanding Of E&O Insurance
If you are a business owner, it is important to build a comprehensive insurance portfolio that will protect you and your business against unforeseen claims. While you may carry a Business Owners Package plan that includes building, personal property and general liability coverage, you could have gaps in coverage if you are not carrying errors and omissions insurance. Errors and omissions insurance, more commonly referred to as e&o insurance, is a policy that will extend coverage for potential claims arising from the professional services you offer. If you sell a service rather than a product, it is important to understand what types of risks and exposures are excluded from your general liability policy. Because exposures such as wrong advice, slander and libel are excluded from your BOP policy, you must invest in e&o insurance to protect yourself.
Errors and omissions insurance policies will cover liability exposures that are typically excluded in basic commercial insurance package. When you are professional offering services in any industry, you are held to the highest standards and are expect to give the most accurate advice. If you give the wrong advice or fail to offer the services that your contract promises, your client can legally file a lawsuit against your company. In today's litigious society, it is extremely important to carry this additional protection.
An e&o insurance policy will cover claims, legal defense fees, settlements and judgments made against you as an individual or company. What many professionals do not recognize, that even if claims of negligence or error are completely unfounded, defending your company in court can be financially draining. With e&o insurance, these defense costs will be covered whether the allegations are founded or unfounded. For very low premiums annually, you can prevent this scenario from ever happening and protect your businesses best interest.
If you are not sure of whether or not you need a professional liability insurance policy, it is important to consult a commercial insurance agent or broker to discuss your liability exposures. Typical professionals requiring e&o insurance include real estate agents, notaries, consultants, mortgage brokers, insurance agents, accountants, contractors, architects, IT professionals and more. If you have been specially trained in school or through a licensing program to offer the services you render, chances are you need an errors and omissions policy customized to fit your specific needs.
If errors and omissions insurance sounds like a policy you lack that you should invest in, contact a commercial insurance company to receive a specialized quote. While policies come in several different coverage limits, you will need to choose a limit that adequately protects you and falls within your budget. Purchasing e&o insurance is one of the smartest decisions you can make to ensure your business is protected against groundless claims of negligence or error. Essential Ideas - Finding Cheap Van Insurance Do You Have Affordable Coverage When You Need It The Most? Honda Motorbike Insurance - Avoid the Migraines Suzuki Motorbike Insurance - A Bullet List of Reasons For Your Rates Yamaha Motorbike Insurance Harley Motorbike Insurance - Better Than a Gremlin Bell Honda Motorbike Insurance : Top 3 Tips to Cut the Costs Harley Motorbike Insurance - Wierd Ways to Cut Costs Leicester City - Manchester City Live Fa Cup Stream Online Hd Tv Coverage Fa Cup Leicester City Vs Man City Live Stream Online Hd Tv Coverage Classic Harley Motorbike Insurance - Learn How to Keep Your Money Insurance Riders- Big things come in little packages Insurance business