subject: What To Look For In Error And Omissions Insurance [print this page] Having any sort of professional career takes a great deal of time and effort. Be it long years at school or thousands of dollars sunk in to the early years of a business, being able to pride yourself on your own career is always something worth fighting for. Unfortunately, such careers can often lead many open to incredible amounts of liability. If you are in any career in which a customer may bring a lawsuit based on your mistakes or inability to meet their needs, you may want to consider error and omission insurance. When shopping for such a policy, there are three main things that a smart shopper should examine.
PAYOUT CAPS
The first thing that most will look for in their coverage is going to be a payout cap. Most general types of liability insurance follow a general level of one hundred thousand dollars per incident, three hundred thousand per lifetime or one million per incident, three million per lifetime. As a rule, a practitioner at any skill level will need to find the most possible coverage for the lowest amount of money.
PROFESSIONAL COVERAGE
Most importantly, any good professional will need to look for a kind of error and omission insurance policy that actually covers their particular career. There are few, if indeed any, policies that function as a sort of "generic" liability insurance, and it is incredibly important that the insurance company actually has some sort of expertise in dealing with a particular field. This allows them not only to process claims more efficiently, but creates a wider range of circumstances in which the company will be likely to pay out a claim. In general, the name of a particular policy should be a clue - medical professionals typically look for malpractice, legal professionals for professional liability insurance, and all other groups should search under either "errors and omissions insurance" or liability insurance.
PREMIUM
Finally, consider looking at your premium before actually signing any sort of contract. Professional liability insurance is generally quite cheap for a first time purchaser, and should be no more than a few hundred dollars for most fields. Try to avoid purchasing the first policy that you see, and look around for offers that are more competitive. While it is not always important to find the lowest premium, searching for a lower overall cost is generally a good idea.
Error and omission insurance is incredibly important for a number of different fields, which should be purchased by anyone that deals with customers in a professional manner. While you can never be too careful in your own career, this sort of insurance does provide a very important safety net for mistakes or an unsatisfied patron. Whether you are a wedding planner or a surgeon, having some form of liability insurance policy is always a very good idea.
by: Bob Roberts
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