IS ERRORS AND OMISSIONS INSURANCE NECESSARY?
INSURANCE IN SOUTH CAROLINA
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IS ERRORS AND OMISSIONS INSURANCE NECESSARY?
What is an Errors and Omissions Insurance?
Errors and Omissions insurance is a type of insurance in which coverage is provided to you or your company against a client holding you responsible for bad service or professional mistake.
In some situations, your error and omission could merely be due to failure to meet service expectations. This type of insurance protects businesses or services that were not provided or did not reach the expected results.
It protects a business, company or a professional for errors or omissions made or the client perceived them to make. What you lose to your client is compensated for by this insurance policy.
Errors and omissions insurance is required for all professions. It is known as malpractice insurance in professions like doctors, chiropractors and dentists while engineers, architects, lawyers and accountants refer to it as professional liability.
Although the name varies, it serves as common coverage to all. This insurance policy in most cases covers settlements, defense costs, and judgments.
It is a known fact that every company makes mistakes. This is why they should buy this insurance before a risk occurs.
While a profession may be lucrative enough, it can also be the cause of unexpected expenses via errors and omissions.
The education and training received by a professional does not absolve him or her from committing errors that can lead to damage claims.
It is human to make errors and omissions, and monetary demand from this error can push someone to the brink of bankruptcy.
Mistakes can never be totally avoided irrespective of how skilled a professional is. In view of this, the best measure to take is to prepare for possible expenses that will be incurred in such cases.
It is necessary to be insured under an errors and omissions policy.
Errors and omissions insurance is commonly used for defense claims. In most cases, when a client becomes a victim of professional malpractice, his only way to get back his money and reputation is by seeking the protections of the laws to achieve both.
Such client may file cases in court against the professional whom he has an issue with. Even if the professional decides to first negotiate with the client, he cannot escape paying for the claims.
Necessity of Errors and Omissions Insurance to Professionals
As earlier explained, errors and omissions insurance provides insurance coverage for professionals in case there are problems of negligence due to the professional services they give.
Accidents and the unexpected do happen for no reason. If by chance, a professional like you become victim to inevitable situations, then it would be to your best interest to be armed with the errors and omissions policy.
As a specialist, you derive pleasure in providing the best services possible.
Have you considered what may happen when your advice or professional service harms another person?
Or what if someone claims that you harmed them in some ways?
Or you are accused of failing to perform your duties as outlined by your contract?
If this eventually happens, an errors and omissions insurance policy in place will protect you and your company from claims.
Even with the best interests at heart and thorough procedures in place, a simple mistake or misunderstanding can occur, leaving the business vulnerable, should a client make a claim alleging negligence.
Many professionals and businesses are relevant today because of the quality of service they offer.
A healthcare professional can improve health status; a real estate broker can help to find the ideal home, a financial planner can enhance a consumer’s stability, however, just a single error made by these professionals can lead to the unexpected and unplanned case in the court, damages payment and its consequences on your business or professional practice.
This is why errors and omissions insurance is the most cost-efficient and stress-free insurance policy for you.
Nobody is perfect in his or her profession. It is a fact that everyone makes mistakes even with the best employees and best practices at work.
An aggrieved client may file a lawsuit against you even if the problem could be sorted out. In this case, you will spend thousands of dollars to defend the lawsuit, even if the allegations are groundless.
These allegations can bankrupt you and put your license to practice at stake.
In addition, the filed law-suits and litigations will obviously decrease your reputation in the market. Litigations also come at a price.
Thus, individuals and companies into a business of providing service to a client for fee have an exposure to errors and omissions.
Who Needs Errors and Omissions Insurance?
It is straightforward to determine whether your business needs errors and omissions insurance.
Every professional or a company that provides a service needs this kind of insurance. Doctors, dentists, attorneys, engineers, architects, accountants, web developers, advertising agents, technology providers, commercial printers and catering companies, all need errors and omissions insurance.
Besides, freight forwarder, wedding planner, marketing manager, economist, construction and maintenance contractors need an error and omission insurance policy.
In fact, virtually any industry you can imagine needs this insurance! If you provide service to another business for a fee, you have errors and omissions exposure and therefore need errors and omissions insurance coverage.
Many professionals and business owners wrongly assume that they will be protected by the general liability insurance whenever they are found liable.
However, the truth of the matter is that errors and omissions insurance protects against separate claims altogether, and the claims brought against errors and omissions are oftentimes more steep and more expensive.
What is Covered and Not Covered by Errors and Omissions Insurance
Error and omission insurance covers professionals that are sued as a result of unintentional errors they made in their business or profession.
As a professional, this insurance will also cover you when you haven’t made an error, but someone is suing you any way.
You will be adequately defended against claims that are brought against your professional services.
Coverage includes legal costs, such as court fees, lawyer fees and also judgments against you. The insurance also helps you to pay out a settlement.
This insurance does not cover anyone for criminal acts, like dishonesty and fraud. It will not cover you for acts that are dishonest or fraudulent.
A mistake or omissions that you make inadvertently shouldn’t end your career or wipe out your life savings.
This is the reason for errors and omissions insurance policy to cover it up and let you to continue on with your life and career.
What are the Policies and Costs for Errors and Omissions Insurance?
The cost of errors and omissions insurance varies from state to state and depends on a number of factors like the organization getting insured, location and amount of coverage concerned.
You need to search for a competent insurance firm and obtain quotations. The insurance agency will handle the exposures linked to your specific business.
Errors and omissions’ policies vary from profession to profession. There is no single standard policy for this coverage. You should read the policies carefully as their meanings vary for each profession.
There are several insurance companies to choose from that supply errors and omissions insurance. A few are known for liability insurance and some simply offer it with some other insurance coverage.
Nevertheless, you must know all the details and ensure that you are purchasing a good quality plan you can rely on.
Finding the Right E&O Insurance Agent for Your Business
By carrying out a simple online search, you can find the right errors and omissions insurance for your needs. Asking colleagues for referrals is another good option.
When Do You Need Errors and Omissions Insurance?
The best time to get errors and omissions insurance is preferably when you start your business or profession. It’s never too late to purchase errors and omissions insurance if you haven’t already. The first call you should make is to your insurance agent, and you should be prepared to discuss your business, the services you provide, and the amount of coverage you need.
At the onset of a career, costly mistakes can be occur. However, when you are covered with errors and omissions insurance earlier enough, you can confidently carry on with your life and career.
Contact the Experts
If you are in need of errors and omissions insurance, personal insurance, business insurance, or cyber insurance in Columbia, Irmo, Lexington, Chapin, and any of the surrounding areas, contact the experts at The Alexander Insurance Group. We will work hard to get you the right kind of insurance for your business. You can contact us at 803-220-2272. We will be more than happy to be of service to you.