If your run a business of any kind that involves providing a service to your clients or customers, then you may have heard of Errors and Omissions (E&O) Insurance. However, many business owners don’t have a solid understanding of what this type of insurance is and exactly what kind of coverage it provides.
What is Errors and Omissions Insurance?
In a nutshell, errors and omissions insurance refers to an insurance policy that protects your business in the event that a client or customers claims you failed to provide the professional service you offered. E&O insurance is also commonly referred to as professional liability insurance. In the medical field, this kind of insurance is known as malpractice insurance.
Specifically, E&O insurance can provide coverage in the event that a customer or client attempts to sue you for:
- damages and claims
- copyright infringement
- attorney/legal costs
- alleged or proven negligence
Who Needs E&O Insurance?
Essentially, all business owners or even independent contractors who provide a professional service to a client base are encouraged to purchase E&O insurance for their own peace of mind and protection. Even if you perform your job with a high level of professionalism and service every time, all it takes is one disgruntled client to try and take away everything you’ve worked so hard to build. Even if the claims a client makes against you are unsubstantiated, you’re still going to have to spend your hard-earned money on defense and legal fees if you don’t have coverage.
Some specific examples of professions where E&O coverage is especially important include that of lawyers, doctors, lawyers, and engineers. However, if you provide any service to a client and collect payment for that service, E&O insurance is a good investment for you regardless of your specific position or industry that you serve.
As you can see, there are many benefits that come along with having E&O insurance—including that of additional peace of mind. If you don’t have this coverage already, be sure to look into purchasing it before your risk becomes any greater. At Spickelmier Insurance, we offer a full range of options for your business, so contact one of our agents today at (877) 591-1525!