Professional Liability Insurance
E&O (errors and omissions) insurance is specifically designed to protect a professional business owner from his/her own mistakes. ‘Professional liability’ is exactly what it sounds like; the liability you take on when you offer someone your professional opinions or services. When a client is harmed in some way due to your actions (or inactions) it can open the door to a lawsuit. For this reason, an E&O policy is a necessity for anyone offering professional services.
It is important to note that you don’t need to make a mistake to get sued. Sometimes, your actions are in keeping with every rule of ethics and to the best of your ability. However, some externality still causes everything to collapse. A client who just suffered from that collapse is going to look for someone to blame; and if they pick you, you can find yourself on the receiving end of a legal action. Once you go to court, anything can happen. That’s why it is best to be properly insured rather than to put your professional future into the hands of a judge or jury down the road.
Not Every Business Has Professional Liability Exposure
Most businesses that sell products rather than services — or whose services do not have a profound impact on their client’s well-being — do not need E&O insurance. However, if you are among one of these groups:
- Financial advisors
- Wedding planners
- Social media consultants
- Graphics designers
- Shipping companies
- Virtually any business offering a particular service to other businesses
your business is at risk if you do not carry an E&O policy.
E&O Insurance Varies Widely
Unlike many other areas of insurance which are almost entirely dictated by widely-accepted actuarial tables, governmental data, and other hard numbers, E&O insurance is not as stable. Some insurance companies only dabble in professional liability, and their numbers can be several percentage points off of those provided by a dedicated E&O carrier — in either direction.
Because of the potentially wide variations in policies, having an insurance agent that works with a broad spectrum of insurance companies will provide the most benefit your business. At Spickelmier Insurance, we are an independent agency serving all types of Florida businesses and professionals. We have access to several top carriers that offer E&O insurance in the state and can help you find the carrier and policy that best suits your needs. If you do not currently have an E&O policy, contact us today at (904) 471-7155 or stop in to our office to learn more.