Your business strives to provide reliable and consistent services to its clients and customers. However, even the most experienced workers with the best intentions may eventually make a mistake or encounter unexpected difficulties. In these situations, financial ramifications could be costly, necessitating adequate loss control measures, including errors and omissions (E&O) insurance.

What Is Errors and Omissions Insurance?

Also known as professional liability insurance, these policies provide specialized liability coverage, potentially helping your company manage the fallout of being sued for allegedly inadequate services. When facing such accusations, you can typically file a claim against your E&O insurance, potentially garnering a payout to assist with legal expenses and losses, including representation, court costs, expert witness fees, settlements and judgments.

While the exact details of errors and omissions coverage may vary, policies can typically help you financially manage accusations of the following:

• Professional errors
• Inaccurate advice
• Negligence
• Omissions
• Oversights
• Misrepresentations
• Missed deadlines
• Breaches of contracts

How Much Does Errors and Omissions Insurance Cost?

Many factors may influence the cost of an E&O policy. Typically, E&O insurance companies may consider the following criteria:

• Industry and specializations
• Location
• Number of employees
• Annual revenue
• Years in business
• Training practices
• Insurance claims history
• Coverage limits

Is Errors and Omissions Insurance Required?

Although E&O insurance is integral to many companies’ business insurance portfolios, legal requirements may vary. Your company may be accountable for varying obligations depending on its unique circumstances. For example, those in the health care industry are often required to carry specialized E&O insurance called medical malpractice insurance. Additionally, some clients and customers may require your business to show proof of insurance before offering you a contract or even allowing you to bid on a job. Regardless, E&O insurance should be a top priority for most companies, as even false accusations could incur significant costs, and lacking adequate coverage could mean you aren’t able to defend yourself.

We’re Here to Help

At Tanenbaum Harber Insurance Group, we will work with your business to establish and maintain robust errors and omissions coverage. Contact us today to learn more or to get a personalized quote.