Ready to start your own business? Well congratulations! Have you got your business cards and open sign? Of course you do. But have you got the right protection for your investment? Here’s some essential information about commercial coverage known as errors and omissions insurance (E&O insurance):
What is E&O Insurance?
With the common nickname professional indemnity insurance, an E&O policy offers different coverage from commercial general liability (CGL) insurance. You will definitely need both. Commercial general liability protects against financial loss if you are sued. This includes: Death, injuries, or property damage caused by your business or employees. Similar to malpractice insurance for doctors, E&O insurance covers damages incurred as a result of mistakes such as errors, professional liability incidents, and contract performance disputes.
What Does It Pay For?
These policies are used to pay for legal costs arising from mistakes. It’s also important to remember that even if you didn’t make an error, you’ll still need to defend yourself if a lawsuit is brought against you. Why? If someone claims something against your company for negligence in the service or advice you provide, and the judge rules in favor of the plaintiff, although you aren’t technically guilty, you still could be facing a lifetime of paying and even have your assets seized.
Who Needs E&O Insurance?
The people who most need this coverage include: Brokers, consultants, accounting, financial service providers, contractors, plumbers, and electricians.
How Do I Receive E&O Insurance?
Contact Brazelton Insurance Group to discover how we can cover your business, large or small, today!