Small Business Liability Insurance

Errors And Omission Insurance

Understanding Errors and Omissions Insurance

What is Errors and Omissions Insurance?
To fully understand Errors and Omissions Insurance (E&O Insurance) coverage you can also think of it as “Professional Liability” or “Malpractice” Insurance.     Errors and Omissions Insurance is a policy that provides you coverage from a potential claim arising from your professional advice or service.  If there is a claim against you for services provided or services you failed to provide that resulted in an error (or omission) that you have made or that a client has perceived you have made you can look to your Errors and Omissions Insurance to help.   Most Errors and Omissions Insurance policies cover judgments, settlement and defense costs.  Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit.
You may already have traditional Commercial Liability Insurance but are you still vulnerable to claims of personal negligence?   Professional liability related to an error or omission is not covered by General Liability Insurance.
Who needs Errors and Omissions Insurance?
Professionals that need Errors and Omissions Insurance are Doctors, Lawyers, Engineers, Accountants, Chiropractors, etc., but if you work with clients in any areas of consultation, service, design or sales you are at risk.  There are hundreds of businesses that fall under this category and range from Real Estate and Home Inspectors, Wedding Planners, Web Designers to Advertising Agencies, Appraisers and Financial Services.
When to buy Errors and Omissions Insurance?
The best time to buy Errors and Omissions Insurance is before you need it.   Let’s face it, everyone makes mistakes.  Your business can not afford to be at risk to a potential claim.  You can have peace of mind knowing that you will be compensated if there is an error or omission with a client.  Every company is different in their services and business practices.    Expect that each Errors and Omissions Insurance policy will be customized to your particular needs.  Make sure the wording of your policy fits your business’s potential exposures.  
A better understanding of Errors and Omissions Insurance will help you to make a smarter decision when protecting your company from financial loss.  Knowing that Errors and Omissions Insurance will protect you and your company against potential liability claims that may have resulted from an error (or omission) related to a service you provided will allow you to do better business with confidence.

I need errors and ommissions Insurance- I am an independant contractor- who do I call?

I was advised to get errors and omissions insurance or quit my job- so I called Insurance companies and they don’t have it. i searched on the web. I was filling out paperwork for a quote but was asked on the form how many employees I had and so on. i’m just not finding what I need. Thanks in advance.:)
Ok I just found an insurance co that handles that and the quote was 1,800 a year …I only earn 20k. i can’t afford the insurance. geez…. I was thinking around 40$ a month??
wow– I just saw my tax return. I guess I earned 19k last year. I work about 50 hours a week– Case Management is just not the greatest gig here in Michigan. Yet these are the wages I agreed to. ah well *sigh*

You do have to call every insurance agent in the phone book. Only a few of them offer E and O insurance and they don’t advertise that anywhere. Usually you have to go to different realty offices and find who they use.
The fees are $1,800 a year because the court cases take 3 years to go to court. You also have to pay a hefty deductible even if you pay the $1,800 a year. Maybe $1,000 per claim. You are going to be “self-insured” for a while until your income goes up. Pay attention to details and you won’t get sued. Never let a phone call go unreturned while doing your job..

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