In our world, we meet the owners of small-to-midsize businesses almost every day, and there are a few qualities you can count on seeing every time: they’re passionate about what they do, they love their customers, and they want to do their best to help each and every one. Unfortunately, in our line of work, we also see the other side of things: business owners who believe so completely in the quality of their work and services, that they’re blindsided when an unhappy customer comes back to them in the form of a lawsuit.
Even the very best physicians, consultants, instructors, and other service providers make mistakes, have bad days, or just meet that one wrong customer. And if that customer perceives that they were injured – physically, monetarily, or however – it could mean a costly lawsuit for the provider. That’s where Errors and Omissions Insurance comes in.
Errors and Omissions Insurance (E&O), also called Professional Liability Insurance, is a commercial insurance product that protects service providers from claims in which a client or customer accuses the provider of damages resulting from inadequate or negligent service.
Who needs Errors & Omissions Insurance?
E&O is available, and at times legally required, for a wide range of service professionals. The policies are often designed around an industry before being further refined for the individual policyholder, and they may even go by standard alternative names. You’ve likely heard of “medical malpractice insurance,” which is a specific kind of E&O coverage designed for healthcare providers.
Whatever it’s called, if you provide an expertise-based service, it’s likely there are Errors and Omissions insurance policies made for your industry. Common industries or professionals which purchase E&O include:
- All medical professionals & businesses
- Life sciences professionals
- Financial advisers
- Investment advisers
- Accountants
- Real estate agents
- Lawyers / legal advisers
- Architects and engineers
- Consultants
- Physical trainers
- Plumbers, electricians and general contractors
- And yep … insurance brokers and agents
If you are working in one of the above professions, or if you believe you may be in a profession at risk of civil lawsuit, don’t hesitate another day in getting E&O added to your policy. Contact Arthur Blake Insurance today.
What does Errors and Omissions insurance cover?
E&O coverage inclusions may vary widely from policy to policy, industry to industry, but at their core, they are designed to cover the cost of defending against a negligence or damage claim. This may include:
- Court fees and legal fees
- Claims, damages, and settlements
- Temporary staff and independent contractors
- Negligence
- Copyright infringement
- Personal injury
Is Errors and Omissions Insurance different from General Liability?
Yes! Professional Liability Insurance (E&O) and General Liability Insurance cover different things, and securing only general liability coverage is one of the most common mistakes that small business owners make when purchasing a policy for their business. As we’ve discussed above, Professional Liability insurance protects against claims made against your service as an expert. If your professional advice or work leads a customer to a perceived injury or loss, it is your professional liability that is at stake.
General liability concerns the routine damages that your business may experience: theft, vandalism, fire damage, or claims against your business as a result of an accident such as a customer slipping on the floor. These common risks are covered under general liability and not Errors and Omissions.
So, do I need Errors and Omissions insurance coverage?
At least some degree of E&O coverage is recommended for any service provider, and the necessity increases significantly in legal, medical, and financial industries. If your current insurance provider has not discussed E&O coverage with you, or if they felt you did not need E&O even though you’re in one of the above-listed fields, consider getting a second opinion.
Arthur Blake Insurance has years of experience working directly with small-to-midsize business owners to custom-tailor Errors and Omissions policies that they can afford, that serve their needs and that keep them protected no matter what happens. We can do the same for you! Let’s chat soon at 972-954-6383, or use our contact form and we’ll get back to you as soon as we can.