It could happen. You might make a mistake, or the desired outcome for a project or service might not be what the customer expected. You might need errors and omissions insurance coverage if customers sue and holds you or your company responsible for services you provided that didn’t have the results you promised or expected.
By Any Other Name, Still The Same
Errors and omissions insurance might have different names depending on the industry. For doctors, dentists and those in medical fields, it is malpractice insurance. For lawyers and accountants, it’s professional liability insurance. Under any name, it covers you for errors you make or mistakes the customer perceives you made while providing service.
What Does It Cover?
Errors & omissions insurance covers the cost to defend you in court. If you’re legal team works out a settlement, it covers the settlement amount. It also pays the judgement if the courts find that you’re liable. These cases can be time consuming and expensive — even if the charges are baseless. The cost to defend yourself or your company might be too much to bear, and they might go bankrupt.
When To Buy It
Make sure you purchase adequate coverage before you provide services. If you try to get coverage after the fact, you might not have coverage for situations that occurred before your policy becomes effective. Some of your clients might insist that you buy coverage, because they want to make sure that if anything goes, they’ll get compensation.
Who Needs It?
You might think that only doctors, lawyers and accountants need errors and omissions insurance coverage, but this is not the case. If you offer advice or share your professional expertise for a fee, you might need this coverage. If for example, your customers can suffer financial losses because of advice you provide or services you render, you need errors and omissions insurance coverage.
Don’t get caught with adequate professional liability insurance coverage. Call us today and speak with an insurance agent who can help make sure you have protection against mistakes.