Most Professionals Need Errors and Omissions Insurance
Written on January 22, 2010 – 5:37 am | by Guru
Business professionals, such as real estate agents, need errors and omissions coverage protection to save them from paying full lawyer fees when a lawsuit arises because of negligence with his or her assistance they provided. This insurance is issued separately from general liability or property insurance.
E&O insurance can also be called errors and omissions insurance, or malpractice insurance. This insurance tends to be tailored towards professionals like architects, accountants, realtors, physicians, as well as other medical experts. E&O insurance coverage protection ought to be purchased whenever a business is first started as well as included in their original insurance portfolio.
There isn’t a standard for E&O insurance. Each situation is varied as well as it will have different insurance requests. An insurance company’s agent can evaluate the company and what work is undertaken at your business’s site and supply a contract which can protect your company’s requirements. These insurance contracts are issued based on a cases made and reported premise, meaning that any claims have to be brought up and pursued inside the time frame that the contract was issued. Claims that arise out of the policy issue date will not be covered. At the time the application for coverage is is being reviewed, an insurance underwriter may decide to take a look at your business’s quality assurance measures, documentation practices and educational courses and if your company has had previous claims.
The cost of professional liability coverage policies is different from company to company. E&O insurance will protect your business from rulings, payouts, as well as defense costs and can possibly save your business thousands of dollars, even if the claim is deemed baseless.
Once E&O insurance is written, the business needs to continue operating at a reputable level. Having this insurance doesn’t mean that your company can begin practicing procedures or performing tasks that might perhaps lead to a negligence suit. The coverage is intended to protect from any unforeseen event or error which may come up.
One Response to “Most Professionals Need Errors and Omissions Insurance”
By HMS National on Jan 22, 2010 | Reply
Good information and advice on e&o insurance… most business professionals do not think about E&O until it’s too late. Definitely something more professionals should be aware of the risks.