Errors And Omissions Insurance Quotes
Errors & Omissions (E&O) Insurance—often called "Professional Liability Insurance"—protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract. Coverage usually includes both litigation costs and any damages awarded by the court, up to the coverage limits on your policy.
What Errors And Omissions Insurance Is Not
Errors and Omissions coverage does not guarantee that you will not be sued. It would be nice to believe that strict attention to your clients' needs and a strong work ethic might perform that function, but in today's highly litigious society, even the most scrupulously competent firms occasionally wind up on the wrong end of a lawsuit.
What a well-designed E&O policy can give you is a fairly good assurance that a single mistake won't wipe your company off the map. Keep in mind, though, that most companies trade mainly on their reputations... and once you lose it through poor workmanship or service, no insurance policy can recover it for you.
Finally, E&O Insurance generally does not protect against fraud. For that kind of coverage, see Directors & Officers Insurance and Commercial Crime Insurance.
Who Needs Errors And Omissions Insurance?
A good E&O policy belongs at the foundation of nearly every company’s insurance portfolio. For new firms, it is usually wise to purchase the coverage prior to product launch, and before you have customers. E&O Insurance is often required by investors, particularly VCs.
Things To Think About
How big are your clients? Are they happy with your services? Are they likely to sue you if they become unhappy? Are there third parties relying upon your service?
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