Small Business Liability Insurance

Posts Tagged ‘and’

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..

Another company betting trend to grow on Breakaway, and so the trend continues: Another institutional broker-dealer bets on the great wisdom of renegade advisors to accelerate in the direction of independence to a steady flow.

Errors Omissions Insurance

How Appraisers and Home Inspectors are Protected with Errors and Omissions Insurance

Home Appraisers and Home Inspectors are important and necessary experts in real estate transactions, but their roles are quite different. Appraisers determine the value of a property, and this information is also used in the estimation of homeowners insurance and real estate taxes. Appraisers inspect a home, its property, amenities and upgrades, and also research other local properties and their values to determine what a home is worth.

Home Inspectors are not Appraisers. Home Inspectors look for defects in a home, or problems which could lead to future repairs for the homeowner. They look for structural problems, in addition to electrical, plumbing, heating and cooling issues that indicate immediate repair needs, or potential future problems. Both fields are vulnerable to law suits, and need to be covered by Appraiser E&O Insurance and Home Inspector E&O Insurance to protect their businesses.

If a lender or buyer has a financial loss that they believe was caused by negligence on the part of the Appraiser, they can sue. Appraiser E&O insurance will protect Appraisers from large financial losses from settlements and legal fees. Even if the Appraiser is not at fault, they can be held responsible. They are especially vulnerable in a volatile economy when values plummet, and attempts are made by owners to regain losses from decreased property values.

Home Inspector E&O insurance is critical for protecting Inspectors because of the nature of their business. If something goes wrong in a home, the homeowner may quickly blame a Home Inspector for not recognizing the potential problem. Home Inspectors may not have been able to foresee a fault in a home despite a thorough inspection, but still be sued by the homeowner. Errors and Omissions insurance can protect the Home Inspector business and its employees from monetary loss.

If an Appraiser or Home Inspector is held responsible for mistakes or oversights, it is essential protection to have coverage with Errors and Omissions insurance. It is even a requirement in some states to have this type of insurance for Home Inspectors and Appraisers, and it guards the business, its owners, employees and subcontractors from losses.

Will Your Credit Affect Your E&O (Errors & Omissions) Insurance and/or Surety Bond Premium?

Someone once mentioned to me that your credit could affect the premium for your E&O Insurance and/or Surety Bond. Is it true for one or the other? Also, if it matters, the E&O insurance would specifically be for a life insurance agent for a 1 million dollar policy and the surety bond would be for a notary which would only be for a $1,000 policy. Thank you in advance for your answers

Credit scoring is used in personal auto and homeowners insurance. I have never seen an E & O or notary policy premium affected by a credit score.

Notary bond premiums are so cheap the company could not afford the cost of ordering a credit score. An E & O carrier might order a Dun & Bradstreet report as an underwriting tool to evaluate a large account but it would not affect the rate and D & B reports don’t apply to individuals.

Errors And Omissions Liability Insurance

US initial jobless claims disappoint
FXstreet.com (Barcelona) – There were 460,000 initial jobless claims in the US during the week ending on April 3, up from 442,000 in the previous week. This increase disappoints market forecasts of a decline to 433,000.

Errors and Omissions Insurance – Why Home Inspectors Need This Insurance Now More Than Ever

In today’s uncertain economy, business owners need to be more aware and informed of their professional vulnerabilities. Now is the time for Home Inspectors to protect themselves against unwarranted claims of personal negligence. Now is the time to get Errors and Omissions Insurance. Errors and Omissions Insurance (E&O Insurance) is a policy that provides you coverage from a potential claim arising from your professional advice or service. You may already have traditional Commercial Liability Insurance but you still vulnerable to claims of personal negligence. Professional liability related to an error or omission is not covered by General Liability Insurance

Errors and Omissions insurance is more important in this economy than ever before. While the housing market is crumbling and foreclosures at their highest in recent years, Home Inspectors are still doing their jobs. Their exposure to homes in foreclosure may lead to more hidden problems due to neglect from homeowners due to loss of income and tight budgets. Homes in disrepair are more common in this market and the potential to make a mistake and miss something is not out of the question. Error and Omissions Insurance can protect you from potential claims and the extra costs incurred.

Errors and Omissions Insurance could include Attorney fees as well as judgments, settlements and defense costs that can result from errors (or Omissions) that you have made or that a client has perceived you have made. Errors and Omissions Insurance can vary to its specifics, so make sure it should include the follow:

• Dollar amount for each liability

• Deductible amount for each liability

• Deductible amount for defense costs

• A section explaining what the policy is for: “This Errors and Omissions Insurance policy applies to errors, omissions or negligent acts in the course of providing or failing to provide professional services.”

• A section listing the services you provide in as much detail as possible

• The retroactive date for claims ( unless written by an occurrence form)

Home Inspectors are working hard in this economy to endure. Errors and Omissions Insurance is the safety net to protect their livelihood. No one should be caught without coverage against personal negligence when in these trying times some are turning to desperate measure to survive. Be prepared for the unexpected claims and accusations. Errors and Omissions Insurance is worth the peace of mind.