Which Businesses Need Errors & Omissions Insurance?
When running your own business, having the right type of insurance coverage is vital. Protecting your business equipment, your clients, your business processes, and yourself are essential. Once you’re a business owner, the buck stops at you and not a higher up employer who will clean up the mess. This sense of responsibility can be quite exciting and is a motivator for many to run their own business, but undoubtedly these hefty responsibilities come with unique risks.
What would you do if you made a damaging mistake with one of your clients, an error that caused them financial harm? To avoid the courtroom, legal fees, a harmed reputation, and more – it’s important for your business to have business errors & omission insurance.
What is business errors & omissions insurance?
Business errors & omissions insurance also called professional liability insurance, is a policy that covers you and your business in the event of errors or oversights. If an error or omission in service were to occur, a business errors & omissions insurance policy coverage would help pay for the legal fees and actions necessary to rectify the situation.
Typical business errors & omissions insurance policies will cover professional mistakes, failure to deliver promised services, or professional negligence. Unfortunately, the claims made under these circumstances don’t need to be valid to cause damage: even frivolous lawsuits require a business to take on a load of legal fees in defense, and that can be enough to harm the business irreparably. Business errors & omissions insurance coverage will ensure that won’t happen.
Who needs business errors & omissions insurance?
Lawsuits for a typical errors & omissions lawsuit can run higher than $140,000, and that’s before adding the business’s legal fees, which can also run greater than $100,000. If the occurrence of such a financial hit would put your business at risk, then errors & omissions insurance is a great idea to cover yourself.
The most common business types that require business errors & omissions insurance coverage include the following:
- Software Development
Any single unintentional mistake in services provided to a client in these industries could result in financial damage for the client – a financial loss they may feel justified to pursue restitution.
How do you get started?
Schechner Lifson Corporation is an independent insurance agency that can offer you help in acquiring business errors & omissions insurance. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the often overly complicated and confusing world of insurance, providing you with the best and most affordable coverage possible.