Error omission insurance is a form of liability insurance for business professionals. This type of business liability insurance is necessary for brokers and real estate agents, attorneys, insurance agents, third party executives, and those who are responsible for quality control. Nearly all companies need an error and omission insurance policy to protect their service providers and their business. The policy can be tailored specifically for your business, and provide coverage for you and your employees. A reputable agent can help you secure the best liability insurance at the best price. You should compare the price and benefits of several different policies before making a final decision.
Errors and Omissions (E & O) Insurance, or Professional Liability Insurance will help protect an individual, company, or professional in the event of a lawsuit. Professional mistakes can happen in any type of business, and a lawsuit can be filed against any business professional. The costs of errors and omissions insurance will vary according to the services you provide, business revenue, the number of professional employees, and the profit and loss history. It is a good idea to have this information close at hand when you are researching liability insurance policies and the companies that offer them.
Business liability insurance provides total protection if financial harm is caused to a customer or client due to a mistake or an error or omission. An error omission insurance policy will cover a significant portion of court costs and attorney fees. Even thorough and conscientious business professionals can be subjected to a lawsuit because of an error, omission, or mistake. If your company is providing a service to the public, it is essential for you to have some type of business liability or errors and omission insurance policy.
A determining factor for selecting this type of policy is the legal structure of the business providing the professional service. A legal business must be either a Limited Liability Company (LLC), Sole Proprietor, Partnership, or Corporation. The legal structure of your business will help determine who will be covered under the error omission insurance policy. Each policy is different, and the one you choose should address the specific issues of your business.
There are many different types of error omission insurance policies offered by a wide variety of insurance companies. Before selecting a policy for your company, there are several key factors that will have to be considered. These factors include the type of professional service you will be providing, as well as the name of those who will be performing the service. You should decide what type of legal structure you will use for your business, and then look for a policy that will suit your business needs.