Business liability insurance is one of the most basic types of business insurance and it is often included in a Business Owner's Policy.. This type of policy pays for losses related to property damage, bodily injury and advertising injury, but what happens when someone does not catch a typo on a large order of wedding invitations or a plumbing repair fails and floods a home?
These kinds of problems can be resolved with errors and omissions (E&O) insurance. Errors and omissions coverage is a specialized type of liability protection against losses that are not covered by a regular liability policy. It can protect you and your business from claims if a client sues you for errors, omissions or negligent acts that resulted in a financial loss.
At Pipeline Insurance, we know that mistakes can happen to anyone. That is why E&O insurance is so important to protect your business from mistakes that may prove costly.
If your business provides a service to clients for a fee, errors and omissions coverage is important. This includes plumbers, printers, electricians, lawyers, doctors and more. For doctors and health care providers, the insurance is called malpractice insurance, while it is called professional liability insurance for lawyers and accountants. Whatever it is called, it is designed to cover you for errors made during the course of business. E&O policies typically cover the business owner, hourly and salaried employees and subcontractors who are working on behalf of the business.
Give E&O insurance serious consideration if your business:
No one is perfect and everyone makes mistakes. If you or one of your employees makes a mistake that causes a client to suffer a financial loss, who will pay the loss? The decision to skip E&O insurance can be a serious financial risk for your business.
There are many types of E&O policies, which vary by insurance company, and they are each written to reflect the unique risks and exposures of different business types. You may want to consider a policy with a retroactive date, which allows the coverage to extend earlier than the date the policy was signed. This is because many events that result in a loss for a client occurred well in the past but you do not know about it until you get a court summons.
An E&O insurance policy, also called professional liability insurance, covers the following:
It is better to be safe than sorry. Contact Pipeline Insurance Services today to request a free E&O insurance quote to protect your business from simple human error that may prove very costly.