Errors & Omissions insurance (also known as Professional Liability Insurance) protects individuals and businesses in the event of a loss as a result of professional advice, opinions, designs, and plans. It differs from General Liability Insurance, which covers bodily injury and property damage. Both should be considered for small business professionals.
Who needs Errors & Omissions insurance?
Any professional who provides a service or gives professional advice that could result in a financial loss if errors or omissions are made. Some examples are accountants, real estate agents, designers, lawyers, architects, financial consultants, appraisers, doctors, lawyers, marketers, programmers, etc. E&O insurance is common for both sole proprietors and businesses.
What are some situations where an errors and omission claim may arise?
- As a financial consultant, you accidentally provide an outdated prospectus to a client, and advise them to invest after the financial rating has been downgraded.
- Real estate agent forgets to disclose unrepaired damage on a home
- Insurance agent forgets to add coverage the client requested
- Accountant misses a deadline, causing a form to be rejected
- Architect makes a mistake on his design, causing the project to be delayed or rebuilt
- Management consultant gives advice that causes a financial loss
Our insurance team will help you find the right E&O coverage for your business. Contact us today and receive a quote the same day.
