Mistakes happen. However, nobody wants a small mistake to cost a fortune. That is why it is important for your business to obtain Errors & Omissions Insurance coverage, so you do not have to worry about a small error damaging your business or impacting your employees.
Southern States Insurance is here to make sure that you understand what Errors & Omissions Insurance covers and why you may need it for your company—understanding what this type of policy does and does not cover will go a long way in helping you decide which type of plan is right for you. We are here to help.
What Does Errors & Omissions Insurance Cover?
Errors & Omissions Insurance coverage (E&O) is intended to protect your business in the event that an error or omission occurs. This insurance policy will cover claims from E&O resulting in financial loss.
You want to be sure that you’re prepared for any situation that may arise. There are many factors to consider, and we want to be sure that you’ve thought of everything when it comes to protecting your business now as well as into the future.
When your policies or your employees lead to a mistake, then it may lead to financial damages that your company will be responsible for paying. Common areas covered in E&O Insurance include settlement costs as a result of a lawsuit. However, there may be additional costs covered depending on the specifics of your claim.
What Doesn’t E&O Insurance Cover?
Of course, E&O Insurance coverage is not intended to cover all situations. In fact, several areas are often not included, such as:
- Intellectual property claims
- Employee injury or illness
- Criminal acts
- General liability claims that result from personal injury
It’s important to understand what your policy doesn’t cover so that you can either include policy additives or opt for additional insurance policies that are more appropriate for your situation.
Who Should Acquire a Policy?
Companies that often handle sensitive information, such as financial advisors or medical professionals, may especially need the coverage. Consider the risks associated with your business and then plan accordingly. A skilled Business Insurance broker can help–after all, they often need this same insurance.
Of course, people are always concerned about how much their policy will cost them. However, the final cost will depend on the type of business you have and how much coverage you need. Ultimately, you want a plan that is affordable but has the appropriate coverage that suits your needs. Finding this happy medium will ensure that you have the right plan for you and your business.
Speak To An Experienced Business Insurance Brokerage
Do you want to learn more about E&O Insurance? Southern States Insurance is happy to take your call and answer your questions. We are here to provide the most up-to-date information about various insurance policies that may be available to you. Contact our office to learn more by giving us a call at 888.971.6304 or request a quote online today.