As a professional, you take pride in providing the best services possible. But what happens when your advice or professional service harms another person? Or what if someone claims that you harmed them in some way? If this happens, you're going to want to have an errors and omissions insurance policy in place. E & O insurance, or professional liability insurance as it's more commonly called, protects your company from claims if a client holds you responsible for errors or for failing to perform duties as outlined by your contract.

How Much Does E & O Insurance Cost?

Errors and Omissions Insurance varies from state to state, and it also depends on what profession you're in, how many people work for you or with you, and it also depends on how much yearly revenue your professional services bring in. The cost will be determined by your business insurance provider, who will need to take a close look at your profession, as well as who you do business with on a regular basis, and only then will the provider be able to draw up an estimate that encompasses the coverage you need.

What Does E & O Insurance Provide?

Errors & Omissions Insurance will provide you adequately defend yourself against claims brought against your professional services by helping you cover legal costs, such as court fees, lawyer fees and also judgments against you. If you need to pay out a settlement, the insurance will help you with that as well.

Who Needs E & O Insurance?

It's recommended that all businesses secure errors and omissions insurance because you never know when a client may make a claim against you out of the blue. You may not even be aware of any dissatisfaction until you're served with papers. Therefore, when you are securing your regular business insurance package you should always ask your insurance provider to add E & O insurance to the coverage you're purchasing.

Most businesses purchase the usual business insurance, which includes health insurance, workers' compensation, general liability and property insurance, to name a few. But many professionals don't even consider E & O insurance, and that is a major mistake. Many business owners are under the false assumption that general liability insurance will protect them in any case where they are found liable. But that's not true. E & O insurance protects against separate claims altogether, and the claims brought against errors and omissions are oftentimes more steep and more expensive.

Therefore, when speaking with your insurance provider, make sure you ask about errors and omissions insurance. If you're about to launch a product or you work with clients and customers, you are playing with fire if you don't have an E & O policy in your portfolio. And if you have all the other types of business insurance, and you've still skipped over the E & O, you're making the same mistake countless other business owners are making. Don't let your business go under because of a claim that could have been weathered simply by having the proper errors and omissions insurance policy in place.

What if you don't find the Errors and Omissions insurance you want?

I know how hard it can be to try and find the exact risk areas with your business that need coverage, but if you want to find out the real areas of risk and truly get insurance that will minimize the risk to the maximum extent possible. look here.