Those who are working on behalf of another—think advising or consulting services—absolutely need to have errors and omissions insurance, also known as E&O insurance. What does this mean? Well, read on to find out a little more and why it is so important.
Errors and omissions refer to many things: a miscalculation, a mistake, an oversight or something neglected or left out. When you’re offering a person or a company advice on a business matter and something goes wrong, they’re likely to blame you. Once the blame has been placed, it’s hard to erase and they will look for compensation.
That’s where E&O insurance comes in. This type of insurance will extend the coverage of your business insurance, giving you an added cushion when it comes to unintentional mistakes (the word unintentional being key to these cases). However, it’s important to really pay attention to which types of errors and omissions are covered in your policy. Your coverage must detail which situations will be covered.
Determining what to include in your coverage can be the hardest part when it comes to errors and omissions insurance. You’ll always want to think about the very worst thing that could happen and make sure you’d be covered if that situation should arise. This is a great way to think about most types of business insurance so that you don’t face any unnecessary stress should something come up.
But knowing what to include can be difficult. It’s often best to consult with an insurance agent with whom you can talk in depth in order to flesh out the things you might potentially need coverage for.
The best way to go about this is to schedule a consult with a professional insurance agent who can lay out not only what benefits you the most, but also presents the other options available so you know you’ve made the right decision. Peter Green can help. As an agent experienced in many types of insurance, he can offer extensive knowledge on the kind of errors and omissions coverage your company might need. Give Peter a call at (714) 258-2800 to schedule a consultation or get a free quote today.