Errors and Omissions insurance is a necessity for those professionals who may be at risk for causing harm to others. With hundreds of thousands of liability claims filed in the United States every year, it is important to have protection for you and your business.
What is E&O Insurance?
Many companies, as well as professionals, depend on errors and omissions insurance to protect them in the case a professional mistake is made. A mistake can consist of anything from a service that was provided unsatisfactorily, to a service that was not provided at all. Maybe the client didn’t receive the results that were expected or promised to them. In the medical field, errors and omissions may be referred to as malpractice insurance, and to other professions, professional liability. Either way, it is an essential detail when it comes to protecting yourself against liability claims.
E & Oinsurance covers the legal costs associated with a malpractice or liability claim. This includes a defense attorney and any settlements that are awarded to the client.
How does it work?
Each policy is customized for the professional’s unique business risks. It is important to enroll in E & Oinsurance immediately, as incidents that occur prior to the enrollment date are not covered. The policy is personalized on a “claims made” form upon enrollment. Make sure to read your enrollment form very carefully to ensure that all of your professional risks are covered within the policy.
In many companies, programs are implemented to avoid errors from occurring. If one does, however, you can feel confident that your customized plan will take care of your claim.