Errors and Omissions Insurance is a “must” for businesses of ALL sizes. It should be part of any business insurance package, and you need to make sure that it’s included in YOUR commercial insurance coverage. If you own a business of any size, and you have a unique product of service, or provide services to regular customers, then E&O insurance should be a required part of your commercial coverage.
People make mistakes – we’re not perfect.
So what happens if you, or an employee makes a mistake and your customer claims that your mistake cost them money or damaged them in other ways?
You get to the office one morning and find a person there waiting on your arrival with a blue-covered document. And you hear the words, “You’ve been served.” Uh oh!
Someone has filed a lawsuit claiming damages. What do you do?
Errors & Omissions Liability Insurance Coverage
Since your commercial insurance package includes Errors & Omissions coverage (sometimes called Professional Liability Insurance), you have your insurer in your corner. Make the call to them and let them know about the lawsuit immediately. Then call your attorney.
E&O insurance protects you, your company, and individuals in your company against damages and covers all legal fees that accompany claims of acts, errors, or omissions in the performance of your professional duties.
Whether you’re found guilty or innocent, you may incur significant legal costs, which can be very expensive. Small businesses have been known to be damaged beyond recovery.
E&O is not included in a general commercial liability insurance policy, but is a cost-effective addition to your business coverage.
Why would you need to think about Professional Insurance? There are too many reasons to list, but just take a minute and think about the thousands of documents you sign off on every month, and the hundreds or thousands of mortgage loans that you originated.
What happens if they go into default? What if the home-owner claims that your error caused them to default on the loan? What if an audit finds errors on your part?
Then you are liable for damages, unless you can prove otherwise.
That’s why there is an insurance policy that will help protect you from liabilities due to honest mistakes. It’s called “Errors and Omissions” insurance. The name of this coverage explains it all. If you make an honest mistake and that loan goes bad, then you’ll be really happy that you have E&O coverage.
In today’s litigious environment, you can’t afford NOT to carry E&O insurance.
Call us today, and we’ll get you covered.