subject: Professional Protection Offered by Errors & Omissions Insurance [print this page] Professional Protection Offered by Errors & Omissions Insurance
There are many things that one has to be aware of especially when opening their own business or being a professional. Most professionals have a certain amount of liability associated with them in the event of a mistake on the provider's part. These mistakes are often referred to as errors and omissions. Errors and omissions not only include errors/mistakes, they also include things that might have been forgotten within the transaction.
It does not matter whether these things occur purposely are not, the professional is still responsible for the end result. Often times a professional is not be able to provide his service due to the nonperformance of another provider. Example: The event planner is responsible for the cake at the wedding. The baker did not have the cake ready. If it is in the event planner's contract to provide the cake, they are responsible for any damages that occur for not following through on their commitment. The wedding planner will have to settle any claims that he might have with the baker individually. The bottom line is that the wedding planner was supposed to provide the cake; and he did not. Therefore, he is liable.
It is important to carry insurance to cover mistakes that may occur when you own a business and are a professional. This insurance is often referred to as errors and omissions coverage. There is not a blanket or standard policy that covers these liabilities. The type of insurance you need will vary according to your career. In some instances, liability insurance will cover these things. Liability insurance usually covers attorneys, certified public accountants, engineers and architects. In other cases, you must have a special policy. In the case of a doctor, you would need a malpractice policy. Some individuals rely on their employers to cover these liabilities. It is very important that you verify the coverage what type of coverage your employer has and how it pertains to you. Professionals often times have their own policies to cover error and omissions in addition to what their employer has. It is important to check with an insurance agent and see what he recommends in the form of coverage. An experienced agent will be able to advise you on what type of coverage is necessary for your profession and have much coverage you need to buy.
When entering into any type of business it is important to be properly covered by insurance in case of errors or omissions on your part or the part of your employees. One such mistake can be extremely costly to an individual and end up bankrupting your business or ending your career. Insurance is necessary to cover the unexpected. If you provide any type of service, be sure to check with an insurance agent regarding your liabilities and the need for errors and omissions insurance. By dong so, you are protecting the longevity of your career.
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