Errors and omissions insurance protects professionals from the costs of lawsuits that claim their work resulted in financial loss for a client. If you're a professional, you could be at risk for this type of lawsuit. Perhaps you're wondering, "Exactly what is errors and omissions insurance?" Here are some things you should know about this type of policy.
What is Errors and Omissions Insurance?
Errors and omissions insurance helps you with the expenses associated with a negligence lawsuit in two important ways.
- Legal bills: Even if you haven't made an error, if a client makes a claim against you or your company you have to defend yourself. The costs of professional legal services add up quickly. Errors and omissions insurance will help defray these expenses.
- Cost of damages: If a liability claim against you is successful, you might have to pay damages. Up to a predetermined dollar amount, errors and omissions insurance will cover the costs of legal damages. An insurance agent can help you determine the amount of coverage that's right for your services.
How Can an Errors and Omissions Agent Help You?
Because you and your profession have a unique set of risks, an insurance agent will craft a policy that's customized for your business. Even if you already have a liability policy, speaking with a specialist in this type of insurance can help you get the coverage you need to protect against claims of negligence.