Make Sure You Are Covered If You Make A Mistake

As a professional, you are held to higher standards. If you were specially trained to provide a specific service, your clients expect you to perform the service to protection. Even though mistakes happen, customers do not want to hear "sorry" when you are responsible for thousands of dollars lost. Practically every professional offering specialized service should carry error and omissions insurance. Commonly referred to as professional liability insurance, errors and omissions insurance will cover claims that may occur during the course of doing business. If you are currently going without e & o insurance understand how you are leaving yourself open to excessive claims.

Errors and omissions insurance is a specialized commercial liability policy that can be tailored to suit the needs of any professional in any industry. It is common for business owners to assume they are fully covered by investing in a Business Owners Package policy providing general liability insurance. While general liability insurance is a necessity, professional liability insurance is also. Common claims that are excluded in a General Liability insurance policy will be covered in an errors and omissions policy, but what is the difference.

General Liability insurance pays for injury and property damage claims that may arise due to the negligence of the company. For example: If you are in the process of renovating your office and a ladder falls on one of your clients your general liability insurance will pay for the injuries suffered by your client. Error and omissions insurance does not cover physical injuries or property damage. This form of liability insurance will pay for financial damages caused by an unintentional mistake you made in conjunction with the services provided.

As you can see both general liability and professional liability insurance are far different. You can think you are fully covered when in actuality you are completely vulnerable to claims that could close your doors for good. Studies show that more than 50 percent of professionals in the nation are operating without errors and omissions insurance. This is not because the professionals are sparing the expense, it is because they not well informed. Make sure you have a reputable and knowledgeable insurance broker to educate you on the importance of errors and omissions insurance.

The truth of the matter is humans make mistakes. One small mistake can lead to the loss of hundreds of thousands of dollars for your client and potentially for you. If you want to make sure you protect both yourself and your clients you must invest in error and omissions insurance. Not only will you protect your business assets, you will also protect your reputation in the industry. Take proactive steps to protect the reputation you worked so hard to build and invest in professional liability insurance.





For more information Visit our BLOG or go directly to our WEBSITE.