Error & Omission Insurance provided by Browne Insurance Services
Mistakes happen. But even an innocent error on your part could lead to a client bringing a lawsuit against you for negligence. Errors and Omissions Liability policy can help you and your company pay for legal judgments or settlements. It also covers defense costs, which can be substantial even if you're not found liable.
What is Errors and Omissions Insurance ?
Business liability insurance covers losses related to bodily injury, property damage or advertising injury. But what happens when a printer neglects to catch a typographic error on a large order of engraved wedding invitations? Or when a plumbing repair fails and causes an entire office to be flooded? That’s where Errors and Omissions insurance can help.
E&O insurance is a kind of specialized liability protection against losses not covered by traditional liability insurance. It protects you and your business from claims if a client sues for negligent acts, errors or omissions committed during business activities that result in a financial loss.
What Does E&O Insurance Cover?
If someone sues your business for making a mistake in the professional services you’ve provided, this insurance can help cover your:
- Attorney fees, which can cost an average of $3,000 to $150,000.
- Court costs, like reserving a courtroom or paying for expert witnesses.
- Administrative costs to put your defense together, such as paying office managers or court reporters.
- Settlements and judgments, which can cost a couple thousand to millions of dollars.
Errors and omissions insurance only help cover claims if:
- It’s filed within your policy period or the extended reporting period
- The incident occurred on or after your retroactive date
The retroactive date means incidents that happen on or after a certain date in your policy are eligible for coverage. The extended reporting period helps cover claims filed within a certain period after your policy expires.
Why is errors and omissions insurance important?
Without errors and omissions insurance, the cost of liability claims can be so expensive that they could put your business at risk of closing. Even if your customer drops their claim, your legal expenses could still be thousands of dollars. And if you’re found at fault or agree to settle the claim out of court, you can expect to pay a large amount out of pocket.
That’s why it’s important to protect your business with errors and omissions coverage. E&O insurance is typically customized to meet specific needs of a business or industry. We can help you find the right coverage, contact us today to know more !