Errors and Omissions Insurance

Definition of Errors & Omissions Insurance

Business owners should consider adding errors and omissions insurance to their portfolios. This insurance is often overlooked, but it can provide valuable protections.

  1. Definition

    • Errors and omissions insurance protects businesses and individuals from claims and lawsuits arising from failure to perform contracted work. It also covers mistakes made in the course of doing business.

    Business Errors and Omissions Insurance

    • Business errors and omissions coverage typically covers all employees of a company, including salaried employees and independent contractors.

    Professional Errors and Omissions Insurance

    • Professional errors and omissions insurance covers mistakes made by self-employed professionals, such as doctors, lawyers, and insurance agents.

    Applying for Coverage

    • When applying for coverage, you may need to supply your underwriter with quality-control documentation, contracts, training manuals, and other paperwork that show how your company does business. Also, be prepared to explain the history of any past claims.

    Cost

    • The cost of errors and omissions insurance depends on the thoroughness of your company’s procedural documentation and the company’s claims history.