Errors and omissions insurance, know simply as E&O coverage, helps protect your business against certain claims made by clients or customers. Let’s look at the benefits and types of coverage available.
What Does E&O Insurance Cover?
E&O insurance will protect you when a client files a claim against your company due to negligence or providing errant information. Legal fees in these situations are very costly without proper coverage. Also known as professional liability insurance, this insurance is especially critical to a business that provides professional services or offers advice to clients. Lawyers, accountants, engineers and consultants are some of the key professional groups that are especially prone to errors and omissions liability.
E&O policies vary, so choose one that best meets your particular needs and circumstances. Coverage may include such items as:
- Negligence – This is the most common type of coverage. It protects against alleged mistakes, failure to fulfill a promise or incorrect advice.
- Copyright infringement – Expenses or damages resulting from copyright issues are covered under this plan.
- Legal costs – Coverage will include legal defense if a claim is filed.
Make sure you are covered against unwanted claims from clients and customers. Talk with your insurance agent to see which type of coverage is best for your business.