Errors and Omissions Insurance
Imagine an attorney that forgets to include one line of verbiage in a significant clause or forgets to file paperwork on time at the courthouse, or a security engineer that accidentally leaves a flaw in their code making a business vulnerable to a cyber-attack.
Service Professions Face Unique Liabilities
For those businesses offering professional services, no matter the industry, Errors and Omission (E&O) insurance can provide valuable protection from liabilities that arise as a result of, or as part of, professional services rendered.
What is E&O Insurance?
Why Businesses Need E&O Insurance and Why it’s Important
Under Errors and Omissions Insurance, things like work errors, undelivered services/omissions, misrepresentation/inaccurate advice, and negligence are fully covered. It’s important to note that Errors and Omissions Insurance does not cover criminal prosecution, bodily injury or property damage, fraud, matters involving employment, false advertising, trade and patent secrets, or invasion of privacy.
Additionally, Errors and Omissions Insurance covers:
- Actual or alleged negligence
- Defense costs
- Copyright infringement
- Claims and damages
- Personal injury
- Claims arising from past services
- Worldwide coverage
- Temporary staff and independent contractors
Types of Errors and Omissions Insurance
Types of E&O Insurance
No Coverage for Criminal Acts
Protection for Any Profession
Some other professions that Errors and Omissions Insurance covers are:
- Commercial printers
- Advertising agencies and professionals
- Fashion designers and professionals
- Transportation, shipping, and fulfillment companies
- Tattoo artists, makeup artists, massage therapists, and aesthetics professionals
- Wedding planners
- Coaches and trainers
- Web design and hosting companies
The Future of Errors and Omissions Insurance
Even in matters where a company or professional does everything in their power to do the right thing, they still find themselves on the receiving end of a lawsuit.
Likewise, thanks to a tough economy, many businesses are reducing staff size in an effort to bring down costs. The resulting increased workloads and mounting pressure ultimately leads to increased stress and more errors. And errors, coupled with external factors beyond a company’s control, like weather, storms, and natural disasters, can eventually lead to claims.