What Is Errors & Omissions Insurance?
Errors and Omissions Insurance (also called Professional Liability Insurance) does what its name implies: it covers your professional mistakes (errors) and the things you overlook (omissions). If you’re sued over a professional mistake or oversight, this policy can help you pay for legal expenses.
A typical E&O lawsuit costs $140,584, according to the National Center for State Courts. And that’s just the amount awarded to your client – it doesn’t include your own legal fees. Tack on another five figures for what you’ll pay a lawyer to put your case together.
E&O Insurance is most common in professional service industries such as architecture, engineering, software development, law, medicine, insurance, and accounting. Whenever someone is paying for your expertise, it’s a good idea to have insurance that can cover you if you slip up.
Clients often accuse business owners of one of these three things in an E&O lawsuit:
Professional mistakes.
E&O Insurance can address disputes over miscalculations, bad recommendations, software bugs, misdiagnoses, and more.
Failure to deliver promised services.
If you overlook something or can’t deliver on big promises, E&O Insurance can cover your lawsuit costs.
Professional negligence.
If a client claims your work doesn’t meet professional standards, E&O Insurance can cover the lawsuit costs.
Median damages awarded in an E&O lawsuit: $140,584.
E&O Insurance can offer $1 million in protection for small businesses and has a median cost of $63/month.
Let us help you with insurance. Call for a free consultation.
