Errors & Omissions Insurance

For many businesses, errors and omissions (E&O) insurance is an essential component of their insurance portfolio. This coverage protects policyholders against claims related to the professional services they provide. Regardless of how diligent and careful a business may be, mistakes happen. With that in mind, E&O insurance can be crucial in securing your business’s future.

What Does E&O Insurance Cover?

As the name suggests, E&O insurance, also known as professional liability insurance, can assist your company if someone accuses you of a mistake or negligence while providing a professional service. These allegations often arise from unsatisfied clients or customers who claim they suffered losses or damages that were your fault.

Although the details of E&O policies may vary, in general, they provide coverage for claims alleging the following:

·        Professional negligence

·        Errors committed while providing services

·        Omissions

·        Misrepresentation

·        Inaccurate advice

·        Violation of good faith and fair dealing

·        Missed deadlines

·        Breach of contract

In response to the aforementioned claims, your E&O coverage may help pay for the following:

·        Attorney fees

·        Court costs (e.g., reserving a courtroom or hiring an expert witness)

·        Administrative costs

·        Settlements

·        Judgments

Intentional acts, criminal activity and legal violations committed by your business are generally not covered by E&O insurance.

Who Needs E&O Insurance?

Any business that provides a professional service can benefit from E&O insurance. Policies can often be tailored to meet the specific needs of your operation or industry. Even if you are not at fault for a client’s losses, the costs of defending yourself from a lawsuit could have a significant financial impact.

Get the Right Coverage

Assessing risks and addressing them with adequate loss control measures is integral to business operations. By including an E&O policy in your insurance portfolio, your company can access critical financial assistance for accusations that might otherwise be devastating for your reputation, finances and future.

We’re here to help. With over 30 years of experience helping businesses understand their coverage needs, Texas Insurance Options is well-equipped to analyze your company’s circumstances and build an optimal E&O policy. Contact us today to get started.