Most business owners have heard of liability insurance. Yet, many do not know about errors and omissions insurance.
This is an important type of business insurance for those who own a professional service. It protects businesses against negligence claims and the alleged failure to provide services.
A Defense Against Lawsuits
Your business can face legal action for negligence. Clients can also sue for the failure to provide services. They can do so even if you gave exemplary service without a mistake. Some individuals will file a lawsuit in an attempt to obtain a settlement or court-ordered compensation even though they are perfectly satisfied with your company's services.
Errors and omissions coverage protects your business against such frivolous lawsuits. More importantly, it can also protect you against those suits that might have merit. After all, just about every service provider makes a mistake at one point or another.
The Types of Businesses That Need Errors and Omissions Coverage
A business that give professional services or advice might benefit from E&O coverage. Certain companies conduct business that require them to have errors and omissions coverage. Errors and omissions coverage can apply to wedding planners, accountants, lawyers, doctors, engineers, architects, web hosting companies, and more.
The Extensive Coverage Your Business Needs
Errors and omissions insurance can even cover work performed by temporary staff. You won't have to worry about mistakes made by those who are on board for a short-term employment stint. Even work by independent contractors might fall under errors and omissions coverage. However, always remember to check your unique policy to see that it covers every employee.
Coverage Across the World
It is even possible to obtain errors and omissions insurance with worldwide coverage. Multiple businesses are multi-national. They sometimes want to insure all of their employees in the same manner. If you file a claim in the United States, one of the United States' territories or Canada, there is a good chance errors and omissions insurance will cover your claim.
Coverage can Even Apply to Past Incidents
Some forms of errors and omissions coverage apply to unknown claims that arise from work done before securing insurance policy. This business insurance coverage extends all the way back to the date you agree to with your insurer. This is sometimes called retroactive coverage.
We've got your coverage needs in mind. ProRisk Advisors can help you find a business insurance policy that meets your needs. Call Us 770-540-7182 today for more information.