Professional liability insurance, also known as errors and omissions (E&O) insurance, protects companies and individuals in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results. Many call it Errors and Omissions insurance. Others call it professional liability insurance. Whatever you call it, it covers you for errors (or omissions) that you have made or that the client perceives you have made.
Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. This can bankrupt a company or individual and have a lasting effect on the bottom line.
When you think about professional liability or E&O insurance, you think lawyers, accountants, architects, etc. But, if you are in the business of providing a service to clients for a fee, you have an E&O exposure and need professional liability insurance. This includes businesses like advertising agencies, printers, web hosting companies and event or wedding planners. You need to consider what will happen if the service is not done correctly or on time, and it ends up costing your client money or harms their reputation.
By not purchasing an E&O policy, a company may be taking a serious financial risk. These losses are not covered under general liability or business owner policies.
The knowledgeable and experienced agents at Boizelle Insurance Partnership are happy to review your current professional liability insurance policy and discuss the details of errors and omissions and whether it is right for you and your business. Call today to talk to one of our business insurance professionals.