Do you need liability protection for advice and services? Errors and omissions insurance is a type of professional liability insurance that protects your business and employees in the event that you are found legally liable for faulty advice or negligence related to a professional service that your business provides. This insurance will cover the cost of legal defenses, even in cases where the allegations are baseless.
A client could choose to sue your business for:
- An actual or alleged negligent act
- Error or omission
- Breach of fiduciary duty committed within the scope of either performing or failing to perform professional services.
Who Needs Errors & Omissions Insurance?
A general rule of thumb is, any business that offers or provides any sort of service will need an errors and omissions policy. Unfortunately, your business can be sued by anyone if they feel as though they have suffered a loss because of your advice or services, whether that be actual, or perceived. For example, a real estate agent risks being sued by a client who feels as though mismanagement resulted in the loss of property acquisition, in another case, a financial advisor could also be sued for recommending that their client invests money and the investment ultimately tanks. Being sure that your business is protected can prevent financial hardship in the future.
Insurance Options for Small Businesses
Errors and omissions coverage is not only for large businesses. Any small business can benefit from this coverage, with a variety of coverages available, including services provided in the past, and work performed anywhere across the world. Types of errors and omissions available includes:
- Negligence: Protects a business against actual or alleged errors and omissions when providing a professional service.
- Defense Costs: Provides legal defense when a covered claim is reported.
- Copyright Infringement: Coverage for damages or claims for copyright infringement.
Have questions? We can help! Contact an Agent at Staples & Associates for more information and protect your business from allegations today.