As a business professional you will likely find that there are a number of different types of insurance policies that you can, and should, have in place, when you are in business for yourself. Different business owners or independently employed professionals will need different types of insurance policies depending on their line of work. One of the most common types of insurance policies are known as Errors and Omissions Insurance, or E&O insurance. Having a basic understanding of what this insurance is, who it is for and what it covers is important should you ever find yourself in need of this coverage.
First you will want to have a basic idea of what E&O insurance is. These insurance plans are a type of professional liability insurance created just for service providers or firms that offer services and advice. This insurance policy is put in place to protect the business owner against claims made from a client who has stated they suffered monetary loss as a result due to the advice or services provider or if they believe that they suffered losses due to your negligence.
Typically, professions in the financial industry, medical world or legal field find that they will need this type of E&O insurance especially if they are giving their professional opinion on a client question on a routine basis. There are other types of service providers who typically need this type of insurance as well. In fact many construction and maintenance professionals as well as those in the transportation industry will find this type of insurance to be necessary. The most common claims are from faulty legal or financial counseling or a failure to perform in accordance with a pre-written contract.
When it comes to getting this type of insurance policy, keep in mind that because E&O insurance covers a very specific type of insurance it is often quoted separately. Depending on the type of organization you are in and the amount of coverage you are looking for these plans can range vastly in price and can get quite expensive. However, many find it necessary as errors can be made on a daily basis, and the wrong error when giving advice or services can cost many businesses a great deal of money in court. Keep in mind even if you have general liability insurance many times the most common error and omission claims will not be covered in general liability. This is why you will need a special E&O insurance plan. For example if you are a lawyer who gives legal advice and your client films a claim saying that your counseling actually caused them losses, your general liability insurance will likely not cover this which is why your E&O plan is so important.
At CALCO commercial insurance you can find out more information on E&O insurance plans and speak to a professional about getting the coverage that you need. Visit them online at calcocommercialinsurance.com.
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