Errors & Omissions Insurance

Errors and Omissions (E&O) insurance, also known as Professional Liability Insurance, is a type of coverage that protects businesses and professionals from claims of inadequate work or negligent actions. It helps cover the costs associated with lawsuits alleging mistakes, oversights, or failures in the services you provide. E&O insurance can cover legal defense costs, settlements, and judgments, helping to safeguard your business’s financial health and reputation in case of a claim.

E&O insurance typically covers a range of scenarios related to your professional services. This includes claims of negligence, errors in services provided, omissions or failure to deliver promised services, misrepresentation, violation of good faith and fair dealing, and inaccurate advice. If a client sues your business for such issues, E&O insurance can help cover attorney fees, court costs, administrative expenses for your defense, and potential settlements or judgments. However, it’s important to note that E&O insurance doesn’t cover criminal prosecution, fraudulent acts, or claims covered by other types of insurance like general liability or workers’ compensation.

Errors and Omissions insurance is crucial for businesses and professionals who provide services or advice to clients. This includes, but isn’t limited to, accountants, real estate agents, architects, engineers, IT consultants, software developers, marketing professionals, healthcare providers, lawyers, and insurance agents. Essentially, if your business could be held liable for mistakes, oversights, or failures in the professional services you provide, E&O insurance is a vital safeguard. Even if you’re confident in your work, unfounded claims can still arise, and the legal costs alone can be significant. E&O insurance provides peace of mind and financial protection, allowing you to focus on running and growing your business.

The cost of Errors and Omissions insurance varies depending on several factors specific to your business. These include your industry, the size of your business, your location, your claims history, the coverage limits you choose, and the level of risk associated with your services. For example, a small accounting firm might pay less for E&O insurance than a large engineering company due to differences in risk exposure. At UCCU Insurance Services, we work with you to understand your specific needs and risk profile to provide a tailored E&O insurance policy at a competitive rate. While premiums can range from a few hundred to several thousand dollars annually, the cost is often a small price to pay compared to the potential financial impact of a lawsuit without coverage.