As a business owner, you need to be prepared for just about anything. That’s why when it comes to protecting your business, coverage needs to extend beyond just your physical property and operating equipment. If your company provides any sort of professional service, consultation, or recommendations to your client base, you’re also at risk from negligence claims.
A customer can claim you were negligent in delivering the service he or she contracted from your business as a result of errors, mistakes, miscalculations, or oversights. Despite you and your company’s best efforts, everyone makes mistakes. You might have the best employees and strong risk management practices in place, but nobody is perfect and the unexpected happens. That’s why it’s important to protect yourself with Errors and Omissions Insurance (E&O insurance).
What Small Businesses Need E&O Insurance?
For those working in the medical field, E&O insurance is referred to as malpractice insurance. Others call it professional liability insurance. Whatever the term you use, E&O insurance policies protect you and your business in the event that a client claims they have suffered a financial loss as a result of your work, or that the service you performed was not done correctly or on time.
The best time to get an E&O policy is before you’re exposed to risk. Errors and omissions insurance can be a strong selling point for your clients, because they know they’re protected in the event of an error or omission.
Simply stated, if your business provides a service for a fee, you are vulnerable to claims of errors and omissions. Since these types of losses aren’t covered by general liability insurance, a lack of errors and omissions insurance creates significant financial risk for your company.
Like all coverage options, there’s no “one size fits all” policy for E&O insurance. For example, a law firm, design company, and shipping business are all at risk for negligence claims, but the same policy wouldn’t work for all of them. That’s why you need an insurance agency that can tailor fit your coverage to match your unique needs.
What Does E&O Insurance Cover?
Most E&O policies cover judgments, settlements, and defense costs. They’ll pay any judgment for which the insured is legally liable, up to the policy limit. Even if the allegations are groundless, companies can incur thousands of dollars in legal expenses defending a lawsuit. With errors and omissions insurance, you’re protected from costly legal fees that could severely impact your company’s bottom line.
ValueOne is dedicated to helping small business owners minimize the risk to their companies. As a business owner, when you know you’re protected, you can dedicate your time and resources to building a thriving company. Contact us today at 855-200-0850 and let us find the errors and omissions insurance policy that will serve your company’s specific needs.