October 28, 2016

Errors & Omissions Insurance

Make Sure Your Business is Fully Covered

Most business owners have never even heard of errors & omissions insurance, let alone know why they need it. So we’re going to tell you what E&O insurance is, why you need it, and how you can get it affordably.

What is E&O insurance?

Errors and omissions insurance is business insurance coverage for your company or yourself (if you are the one providing a service) when a customer tries to sue you for not providing the expected or promised results. Here are a few examples of what E&O insurance covers:

  • Professional liability: for professionals such as lawyers and accounts who may need coverage if a client sues them for perceived errors or negligence claims
  • Malpractice: doctors, chiropractors and other medical professional insurance may need coverage if a patient believes the doctor made a mistake in their diagnosis, performing a surgery, or other actions related to their care
  • Copyright infringement: marketers, coders, publishers, and other professionals who may be accused of infringing on copyrights or trademarks get coverage under E&O
  • Unsatisfactory service: for any person providing a service, this will cover claims that the service was not performed correctly or as expected
  • Defective products: if someone has sued you because a product you sold them caused injury or damage, then E&O insurance will protect you

Why You Need Errors & Omissions Insurance

Court litigation can cost thousands, if not tens of thousands of dollars, between defense costs and payment for a settlement or judgement. Most small businesses would go bankrupt if they were to get sued, because they don’t have the extra capital to be able to pay for situations like this. Mistakes on the job are inevitable, so you need to be prepared for when they do happen.

Don’t make the mistake of thinking that your general liability insurance policy will cover you! General liability only covers damages to your property and accidents that occur on your property. Simply put, general liability protects you from outside, while errors & omissions insurance protects you from within.  You need both for complete protection of your business.

How to Get E&O Insurance

With errors & omissions insurance, there is not a “standard” policy, which is why it is so important to get expert advice. Your policy needs to be tailored exactly to your needs as a business. To get help with your E&O insurance, call our insurance agents at (888) 840-4020 or get a quote online. Cornerstone Preferred Insurance has branches in both Glendale and Santa Clarita!

Our agents don’t work for any one company, we work for YOU – so we will find the best policy for the best price. All of our expert insurance agents have worked extensively with commercial business, so you can trust our advice and our experience.