Professional Liability aka Errors & Omissions
What is E&O / Professional Liability?
Errors and Omissions is a type of policy that covers a company, individual or group, in the event that a client is affected by an error or omission in performance with the professional’s duty; when they fail to provide the expected or promised results. General Liability Insurance only covers bodily injury or property damage caused by your business or service. Financial claims are not covered by Commercial General Liability coverages. Therefore an Errors & Omissions policy is needed to fill that void. Even if the allegations are groundless, attorney fees to defend such lawsuits are present.
Who Needs E&O Coverage?
Consultants and those providing professional services; anyone who uses advice or expertise as part of their business offering. Anyone providing a service to a client for a fee has a professional liability exposure.
Examples of E&O Claims:
- Jeremy, a local property manager, failed to pay property taxes on his client’s apartment building. The apartment building owner is assessed with a fine and penalty. Jeremy made an error in not submitting the tax payment in a timely manner, which resulted in a financial loss to his client.
- Dawn owns a machine shop. Dawn is contracted to design and build 2,000 widgets for her client’s machine. During the process, Dawn miscalculates a measurement which alters the operations of the client’s machine. The client has already assembled the machines and is ready for sale when they discover that there is a problem stemming from Dawn’s widgets. Dawn’s client now has to have all the other parts for the 2,000 machines remade, causing a significant financial burden and loss. Dawn is now responsible for the cost her client has incurred due to her error.
How to Get a Quote:
Send an email to Quotes@benefitexperts.com , indicating your industry and that you would like a professional liability quote. Based on your industry, we will send you back the specific application you need to complete. Depending on your industry, we may also need resume’s and bios of key professionals in your organization, copy of a vendor contract typically used, and marketing or advertising material that you use.
Benefit Experts Insurance Agency is your company’s one-stop shop for Employee
Benefits (Health, Dental, Vision, Life, Disability, etc.) and Risk Management /
Commercial Insurance Policies (General Liability, Work Comp, Directors &
Officers, Professional Liability, etc).