What Does Errors And Omissions Insurance Cover?
Errors and Omissions coverage can cover your defense costs, along with any damages you must pay or settlements reached both in court and outside of court. Outlined below are the coverages that errors and omissions insurance provides for organizations.
Court Costs
Our E&O policies will cover your business’s defense-related court costs up to the limits of your policy.
Settlements
This insurance covers the costs involved in settling a plaintiff’s claims outside of court, up to the limits of your policy.
Attorneys’ Fees
Our policies will cover your attorney fees related to defending your company in court.
Judgments
E&O insurance will cover decisions or courts or judges up to your policy’s limits.
The most important thing to remember is that your error or omission must be unintentional for the insurance to pay for these claims.
It typically covers:
- The owner of the business
- Salaried and hourly employees
- Subcontractors who work on behalf of your business
What Unintentional Negligent Acts Are Covered?
When a negligent act is committed by mistake, organizations must be protected from any damages that may result. Here are some of the unintentional acts of negligence our E&O policies can cover.
Misrepresentation
These claims could arise when you promise you will deliver a service or product at a certain time or in a particular manner but then fail to follow through on that promise.
Improper Advice
If a client loses money or experiences other types of damages stemming from advice you gave them, you could be sued.
Copyright Infringement
Some of our Errors and Omissions policies offer protection if you unintentionally violate a copyright in software codes, text, or designs.
Violations Of Good Faith
E&O insurance can provide coverage in cases involving a failure to communicate or withholding essential information.
E&O Costs
The cost of errors and omissions insurance can vary greatly from business to business, as no two situations are the same. Several factors can determine how much you’ll pay for E&O insurance, including:
The Industry In Which Your Business Operates
Insurers use the industry in which you operate to determine two essential factors: how often you are likely to face liability claims and how much they typically cost to resolve. Some professions, like architects, face a higher risk due to the nature of the services involved.
The Number Of Employees At Your Company
The more employees your company has, the higher the chances are of someone making a mistake. That’s why companies that have more workers often pay a higher rate.
Your Geographical Location
Insurers will look at your location to determine the cost of your policy. Some companies in highly populated urban centers or areas with high claims rates may pay more. In addition, your state may have minimum coverage provisions that apply to your industry.
Your Chosen Coverage Limits
You can expect to pay higher premiums in exchange for more coverage.
Get In Touch With Burton & Company Today
At Burton & Company, we make it easy for you to get the coverage you need. Get in touch today by calling (888) 652-1325 to find out how we can tailor an E&O policy to suit your business’s requirements and budget so you can enjoy the peace of mind that comes from knowing you’re protected. Additionally, you can request a quote online to speak with a professional insurance agent at Burton & Company.
