Call Us 866.840.8004 ☰ ˟
Logo
Call Us 866.840.8004
  • Home
  • Get A Quote
  • About Us
    • About Us
    • Management Team
    • Testimonials
    • Privacy Policy
  • Products & Services
    • Errors & Omissions
    • Cyber Coverage
    • Commercial Crime
    • D&O
    • EPLI
    • Fiduciary
  • Payment Options
  • Resources
    • Forms & Applications
    • Insurance Coverage Reports
    • Insurance Glossary
    • E&O Tips
    • Claims Made Coverage
  • Blog
  • Contact
    • Contact Us
    • Refer a Friend
Home > Blog > Why Do Businesses, Even Small Ones, Need E&O Insurance?
FRIDAY, JANUARY 18, 2013

Why Do Businesses, Even Small Ones, Need E&O Insurance?

Errors & Omissions InsuranceDoes your business need errors and omissions insurance? To answer this question, you must first understand what E&O insurance is. Basically, it is a professional liability insurance meant to protect businesses from claims made by customers for negligent actions and inadequate service. E&O policies cover both settlements and costs incurred by the suits. It is thus evident that all businesses need E&O insurance because:

High Standards

Irrespective of your industry, if you are in business, you are supposed to offer high quality of service to your clients. Moreover, if you are a professional (lawyer or doctor) your licensing terms will include the quality of your work standards.  In some businesses, it may not even be clear what is meant by “high quality.” The problem is that if your clients feel that they have not received quality work from you, they can sue you for their loss. In fact, this is true whether or not your profession has official (published) codes of conduct. When this happens, your E&O coverage will protect you or your business from the consequences of the lawsuit.

Human Mistakes

Everybody makes mistakes. Even if you have a code of conduct for your business and you follow it to the letter, who is to say that you won’t make a human error? If you are a plumber, you might use a wrong type of pipe during installation. As a computer technician, you might install a piece of bad software in your client’s computer or even introduce a virus into the system. These are human mistakes that can happen to anybody, but your clients will not leave them as such. When sued, you may be required to use a lot of resources to settle the damages. This can be financially crippling, more so if yours is a small business.  

It May be a Requirement

In some cases, business owners might not even have a choice on whether or not to have E&O insurance. There are industries that are required by law to be covered for errors and omissions. For example, contractors in different industries are often required to have E&O insurance to cover both property damage and bodily injury they incur on others in the course of their work. In some cases, it is your clients who will insist on E&O coverage, in which case you don’t have a choice but to have it.

You Don’t Have To Be Wrong To Be Sued

If you make a professional mistake and you are not insured, the consequences can be devastating. But then again, you don’t have to make a mistake to be sued. You would be surprised by the number of frivolous lawsuits pending in courts. Your clients can even sue you for perceived errors, and those kinds of cases may not be easy to handle without insurance. Remember, E&O insurance also covers legal fees.

The insurance industry is constantly evolving, and one often needs the advice of experts to navigate it successfully. If you have questions about Errors & Omissions insurance, do not hesitate to contact Insurance By Design at 972-499-3414 for more information. 
Posted 12:27 PM

Tags: errors and omissions insurance, eando insurance, texas eando insurance, california eando insurance, insurance by design
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2013
  • 2012

  • errors and omissions insurance(13)
  • insurance by design(9)
  • texas(8)
  • insurance(8)
  • eando insurance(8)
  • texas eando insurance(5)
  • california eando insurance(4)
  • california(4)
  • dallas(3)
  • texas e and o insurance(3)
  • california e ando insurance(3)
  • errors and omissions(3)
  • insurance agents(2)
  • eando insurance for engineers(2)
  • eando(2)
  • defense costs(1)
  • liability(1)
  • professional liability(1)
  • property casualty 360(1)
  • professional negligence(1)
  • e and o insurance(1)
  • american agent and broker(1)
  • texas deceptive trade practices act(1)
  • insurance eando claims(1)
  • eando insurance for professionals(1)
  • business(1)
  • settlements(1)
  • judgments(1)
  • company(1)
  • insurance agents errors and omissions(1)
  • west texas(1)
  • cyber liability insurance(1)
  • independent agents(1)
  • insurance agent errors and omissions insurance(1)
  • basics(1)
  • contract(1)
  • insurance agents eando insurance(1)
  • coverage(1)
  • superstorm sandy(1)
  • policy(1)
  • claim(1)
  • liability insurance(1)
  • e and o risk(1)

View Mobile Version

      
The Hartford - Insurance Agency Network   
                            
 Carrier

Carrier

Carrier

Carrier         
                            
fortegra logo

 trisura logo


Home| Get A Quote| Customer Service| Blog| About Us| Contact
13465 Midway Road, Suite 202 | Dallas, TX 75244
P: 866.840.8004 | F: 214.217.2548
CA License# OH64802

© Copyright 2018, IBDpro, LLC

Powered by Insurance Website Builder