The Importance of Errors and Omissions Insurance
The basic concept behind Errors and Omissions Insurance, or E&O, is that the coverage provides protection for you in the event that an error or omission on your part has caused a financial loss for your client. This type of insurance policy covers your company or you individually, and goes beyond your Orlando General Liability policy.
Depending on your industry, Errors and Omissions Insurance may be referred to as different things, such as malpractice insurance for doctors and dentists, or professional liability for lawyers and accountants. Whatever the profession, it covers you for any errors you have made or that the client perceives you have made.
Industries that typically invest in this type of insurance include doctors, lawyers, accountants, architects, and engineers. However, any industry can benefit from this coverage. Let’s say a wedding planner reserves the band, caterers, etc. for the wrong date and everyone shows up but the wedding party and the guests, who pays?
Some other companies that use Errors and Omissions are advertising agencies, commercial printers, web hosting companies, photographers, etc. Basically, if you are in a business of providing services for a fee, you have an Errors and Omissions exposure.
The right time to invest in Errors and Omissions coverage is before the risk is taken. It should be a priority within your insurance portfolio if you work in the service industry and know you will have the exposure. It some cases, having this type of insurance can even be a selling point with your clients.
Newman Crane specializes in creating Errors & Omissions Insurance in Orlando as an enhancement to your existing General Liability policy. Coverage up to specified limits include contract performance of your professional staff, legal defense, and court or other costs for judgments which have been lodged against you. These plans may also cover your W2 and 1099 employees and subcontractors, even if they are off-site or out-of-state. Contact us today at (407) 859-3691.