Choosing Errors And Omissions Insurance
Choosing Errors And Omissions Insurance
In our ever-increasing litigation society, it is crucial for professionals to have reliable errors and omissions insurance. If you are in a field such as real estate, you understand the need to protect your professional reputation just as much as any other assets you use in your business. Even if you are facing a lawsuit that is baseless, you will need insurance to pay for your legal defense fees. However, finding a company willing to take the risk of providing E & O insurance may be something of a chore.
With this in mind, it is best to try to obtain this type of coverage before you begin to practice to minimize the risk to insurance companies, therefore making you a more attractive prospect. Not only with this insurance cover your legal defense fees, but it will also cover any damages that may be awarded to a client up to a certain amount. However, this insurance is not the same as general liability insurance and property insurance, which are also very important for professionals. An employer may provide you with coverage, but many professionals opt to get additional coverage to be sure they are covered individually.
As you search for errors and omissions insurance, there are many things you need to keep in mind to be sure you get the best policy available for your needs. For instance, it is best to find a specialized agent who understands your field whether it is real estate or medical malpractice. You also want to make sure all your services are covered under your policy. You need to check to see if your policy has a prior acts clause that excludes coverage of events that happened before the time of your coverage.
You also need to take precautions if you are changing carriers. You should have tail protection from your previous insurance company if a prior-acts policy is unavailable from your new carrier. Another important factor to have in your policy is innocent party protection to help prevent you from taking the fall for another's actions. If you have any other special needs, you need to have your policy tailored to cover circumstances unique to your profession. For example, real estate dealers may look into fair housing protection, which is typically not widely available from all insurance companies.
You may also check to see if there are any state laws requiring you to carry errors and omissions insurance. If so, you need to know the minimum requirements of your industry. In many cases, there are already set industry standards. However, you may decide that you need more coverage or have other needs beyond those standards, so you need to find a policy that suits you.
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