Why Errors and Omissions Insurance is Important

Why Error and Omissions Insurance is Important

Have you ever needed insurance for your business? If so, what types of insurance? You probably thought about the coverage that small business owners introduced to which cover their building and assets.  For those in the construction industry, it required that the construction workers are included. Ever heard of Errors and Omissions Insurance? Errors and omissions insurance (E&O) is known to be a type of professional liability insurance that protects companies, individuals or workers against claims made by clients for unsatisfactory work or negligent actions.  

Several factors play a part when you consider obtaining this type of coverage. As we all know, all kinds of workers, whether permanent /full time or contractors are prone to be reported for some error which will later turn into a claim. The unintentional damage can range from omitting a few paragraphs in a technical document, a mistake in medical diagnoses or a misleading statement on a company website. Either way, it’s vital to have errors and omissions insurance merely to protect you against costly results of unintentional work errors. 

So, what are the benefits of having Errors and Omissions Insurance? E & O insurance shows that your firm has high expectations. Strengthens your company’s reputation and shows that you are prepared to take on various types of work in your industry and you are ready to take on risks.  In all honesty, you take pride in your company, and you are doing all you can to protect it.  Therefore, your chances of obtaining valuable contracts are higher which means that your firm will increase revenue! You’ve got to have a peace of mind once you get this insurance!
Who should have errors and omissions insurance? Have your clients asked you about errors and omissions insurance? If not, you probably don’t know if you need it or not! By law, licensing boards or regulatory agencies require some professionals to obtain errors and omissions insurance.  The requirements are different from state to state.  Here are a few professions that require E & O Insurance:

Home Health Aides
Social Workers
Insurance Agents

If you are a notary, you should make sure that you are covered! Some companies offer group errors and omissions insurance which protects each notary from claims if clients hold them responsible.  Make sure you check the company’s general liability policy to see who is covered.  There may have been changes made within the firm, and the coverage needs to be updated. It is crucial, and you should review the policy before the renewal date.  The coverage is unique to your specific business type, so it’s time for you make an assessment to determine what kind of coverage you have and what type of coverage you need.

In conclusion, it is vital to have errors and omissions insurance to cover your company.  By not having this insurance, you could be missing out on receiving such benefits like legal defense costs, judgments as it relates to notaries, low deductible or no deductible, protection of notaries performed at your place of business and more. Protect your firm today with errors and omissions insurance, and you will be glad that you did.