A Word From Our Sponsor On Error Omission Insurance

Error omission insurance covers basically what the name implies. It will cover you and your business against any covered error or omission your business makes during the course of doing business. This coverage is usually for professionals who have specific risks in their particular field. No matter what your profession there is a good chance that you could make a mistake that is perceived to have caused financial harm to someone else. This is likely to end up in a lawsuit.
Your error omission insurance will pay in whole or in part for the cost of defending you and your company in the event of a lawsuit. How much your policy will pay will depend on the type of coverage you choose. Without this coverage to offset your defense costs it could put a major strain on your business’s finances as defense costs can run into thousands of dollars.
Your error omission insurance coverage is usually written as a separate policy not included with your other liability coverage or package policy. There will be a specific limit of liability that will usually include both legal costs and damage awards in a single limit. The common exclusions from coverage are international, fraudulent or illegal activities, and in some policies punitive damages. There are some states that will not allow an insurance company to cover punitive damages. The belief is that if an insurance company pays for punitive damages there is no punishment for the company.