In today’s fast-paced and litigious business environment, financially protecting your company from potential legal claims is more crucial than ever. Errors and omissions (E&O) insurance, also known as professional liability insurance, can be a financial safeguard for businesses and professionals who provide specialized services or advice. Whether you’re a consultant, a real estate agent or a tech service provider, understanding the importance and coverage of E&O insurance can help you mitigate risks and maintain your professional reputation.

What Does E&O Insurance Cover?

E&O insurance can typically cover the following:

• Errors or oversights, such as a tax preparer making an error that results in a penalty for the client

• Failure to deliver services, such as missing deadlines or failing to provide a service as agreed, like a contractor not completing a project on time

• Professional negligence, such as not meeting the expected standard of care, such as a website designer creating a site with security gaps that lead to a data breach

• Misrepresentation, such as providing false or misleading information, like a real estate agent making inaccurate statements about a property

• Violation of good faith, such as breaching the implied duty of fair dealing in contracts

E&O insurance can help cover legal defense costs, settlements and court judgments, which can be very expensive for your business.

How Much Does Errors and Omissions Insurance Cost?

The following elements can influence E&O premiums:

• Industry

• Business size and revenue

• Coverage limits

• Claim history

• Type of services provided

• Policy deductibles

• Location

Learn More

Contact Kevin Brewer & Associates to discuss your insurance portfolio today.