Where Can I Get Errors and Omissions Insurance in 2024?

Errors and Omissions Insurance, often referred to as E&O Insurance or Professional Liability Insurance, is a critical safety net for professionals in various industries. This type of insurance provides protection against legal claims resulting from professional mistakes or negligence. In this article, Where Can I Get Errors and Omissions Insurance is, why it’s important, the different types available, how it works, and where you can find the right coverage.

What is Errors and Omissions Insurance?

Errors and omissions insurance, also known as E&O insurance and professional liability insurance, helps protect your business from lawsuits that claim you made a mistake in your professional services. This insurance can help cover your court costs or settlements, which can be very expensive for your business to pay. Learn more about what errors and omissions insurance coverage is.

Why are errors and omissions insurance important?

If you provide professional advice or services to clients, you likely need this policy.

Your clients might require errors and omissions insurance in the terms of a contract. It’s strongly recommended for professionals who make a living off their expertise.E&O insurance, also called professional liability insurance, protects your business if you’re accused of a mistake, oversight, or professional negligence.

This policy will cover legal defense costs related to the lawsuit, including court costs, settlements, and judgments. You’ll typically pay a deductible, and your insurance provider will pay legal expenses up to your coverage limit.

Who Needs E&O Insurance?

You need errors and omissions insurance if you’re in the business of providing a service to clients for a fee. We typically provide E&O coverage to printers and building trade contractors, such as electricians, plumbers, HVAC installers, and sheet metal workers.

E&O insurance is typically customized to meet the specific needs of a business or industry. For example, a printer has different risks than an electrician. Both have the need for liability insurance, yet each needs a completely different type of coverage.

E&O insurance policies usually cover:

• You, the business owner
• Your salaried and hourly employees
• Any subcontractors working on behalf of your business

What Errors and Omissions Insurance Doesn’t Cover

Errors and omissions insurance doesn’t help cover claims from events that happened before your policy’s retroactive date. It also doesn’t help your business with claims filed after your policy’s extended reporting period.

Be aware that errors and omissions don’t cover every type of liability claim. This insurance won’t help your business with claims of:

Illegal acts and purposeful wrongdoing, such as intentionally breaking the law or deceiving your customers or clients.Bodily injury or property damage that your business causes. For these kinds of claims, you’ll need a general liability insurance policy. Employee injuries or illnesses caused by their work. A workers’ compensation insurance policy can give your employees benefits to help them recover from a work-related injury or illness. Be aware that many states require this coverage if you have employees. Discrimination or harassment in the workplace that your employees file. Getting employment practice liability insurance can help cover these types of claims.

What type of E and O insurance should I buy?

Errors and omissions insurance policies vary from company to company, and are written to reflect inherent risks and common exposures particular to different types of businesses.

Even if claims are found to be unwarranted, legal fees and other related expenses can quickly eat up a company’s cash reserves in no time, causing financial hardship. Most errors and omissions insurance policies cover judgments, attorney fees, court costs, and settlements up to the limits of the policy.

Some events resulting in a loss for a client may have occurred several years in the past, and the first time the mistake is apparent is when a court summons arrives in the mail. That’s when the retroactive date on the policy is very important. The farther back the retroactive date of the policy, the more coverage and protection it offers.

Three reasons E&O Where Can I Get Errors and Omissions Insurance:

• Fulfills contractual obligations
• Some states require it for specific professions
• Covers legal defense costs up to your policy limit

Errors and Omissions Insurance Cost

Every business has unique needs, so your errors and omissions insurance price will be specific to your company. What you pay for E&O insurance will vary by company depending on the size of your business, the state your business is located in, the coverage limits chosen, and the risk class your business is associated with. However, no matter what you pay, when you consider the cost of errors to your business, paying an insurance premium is worth it.

Insurance companies look at a number of different factors that can influence how much your E&O insurance costs, such as:

• Business risk: If you’re in a higher-risk industry, you’ll likely pay a more expensive rate. 
• Coverage limits: The higher your policy limits, the more coverage you’ll have, which usually means higher premiums.
• Claims history: Typically, you may pay more for your E&O coverage if you have a history of liability claims made against your business.
• Location: Rates will most likely vary depending on where your business is. For instance, you may have a higher insurance cost if you operate in a busy city.

E&O Savings and Discounts

You can help keep your errors and omissions insurance cost down by:

• Training your employees
• Checking your contracting system for quality control
• Communicating with customers regularly about issues to make sure they’re satisfied

Get a Fast and Free Errors and Omissions Insurance Quote From The Hartford

We’re an insurance company backed by over 200 years of experience. We understand your business has unique needs and we’re here to help get you the coverage you need. Get a small business insurance quote today and learn how we can start protecting your business.

Frequently Asked Questions

How much should an E&O policy cost?

On average, errors and omissions insurance costs $61 per month, or about $735 annually. Most policyholders can expect to pay between $50 and $100 per month for their errors and omissions insurance coverage. 

Who typically carries errors & omission insurance?

Errors and omissions insurance (E&O) is used by professional service providers to protect them from lawsuits and financial losses over claims of unsatisfactory work. This includes those who offer professional advice, such as realtors, insurance professionals, tax preparers, and IT professionals.

What insurance policy covers errors and omissions?

E&O insurance is a kind of specialized liability protection against losses not covered by traditional liability insurance. It protects you and your business from claims if a client sues for negligent acts, errors, or omissions committed during business activities that result in a financial loss.

Do banks carry E&O insurance?

This insurance protects residential or commercial mortgage banking or brokerage firms and their employees when accused of negligence in the performance of professional duties and services.

What does Errors and Omissions insurance not cover?

Illegal acts and purposeful wrongdoing, such as intentionally breaking the law or deceiving your customers or clients. Bodily injury or property damage that your business causes. For these kinds of claims, you’ll need a general liability insurance policy.

Conclusion

Errors and Omissions Insurance is a crucial protection for professionals and businesses that provide services or advice to clients. It offers financial security and peace of mind in the face of potential legal claims. By understanding the importance of E&O Insurance and selecting the right coverage, you can safeguard your career and assets.