What E&O Insurance Covers
Policies can vary, but most forms of errors and omissions insurance cover the following. Note that some industries don’t need all of the coverage mentioned below, while others may need additional coverage because of the nature of their operations. Luczkowski Agency Insurance and Financial Services agents will help you determine which coverages are best for you.
- Claims and Damages: These are one of the major sources of potential loss that your company faces. E&O protection on claims can reimburse you for any payouts you may have to make as a result of such claims being filed.
- Defense Costs: Whether or not you win a case, your attorney is going to expect payment. E&O insurance can reimburse you for their fees, allowing you to hire professional support without worrying that it will be too expensive for you to afford.
- Employees, Temporary Staff, and Independent Contractors: You may be liable for the actions that anyone associated with your business takes—whether or not they’re an employee. This part of the policy protects you if they make a mistake.
- Negligence: Often considered one of the most important parts of E&O coverage, negligence coverage can reimburse you for problems like making a mistake while giving advice or failing to complete a job. Whatever the cause of the problem, ensuring you’re covered will help protect your business if something goes wrong.
Errors and omissions policies payouts vary among companies depending on the possible severity of financial mishaps. If you’re not sure how much of a cap your business should have in each category, call one of Luczkowski Agency Insurance and Financial Services agents today and ask them for more information. You may need to increase your policy cap as your business grows, and we can help you decide when it’s time to raise the limit.
1. Oxford Reference, s.v. “errors and omissions,” www.oxfordreference.com/view/10.1093/oi/authority.20110803095756997?rskey=tDNztO&result=1
2. “Why Consumer Trust Is the Key to Repeat Business.” The Wise Marketer. January 2005. Accessed April 18, 2016. http://www.thewisemarketer.com/features/read.asp?id=54.
3. “Claims Trends.” Insurance Journal News. November 03, 2014. Accessed April 18, 2016. http://www.insurancejournal.com/magazines/features/2014/11/03/345153.htm.