Manage your risk proactively.
Errors and omissions liability insurance provided by Executive & Global Insurance Risk Managers.
Errors and omissions liability insurance protects any business that gives advice, makes educated recommendations, designs solutions, or represents the needs of others. We’ll help you design coverage that fits your needs so that one simple mistake does not cause financial devastation.
When general liability insurance isn’t enough.
You’d be forgiven for thinking that general liability insurance covers every liability risk you face, but that could be an expensive mistake. This is where errors and omissions (or E&O) liability insurance comes in.
Covers financial losses caused by your actions or lack thereof.
In simple terms, general liability insurance covers the costs of physical damage, whether that be to a person or your business property. Errors and omissions liability insurance (E&O) covers financial losses that other people–such as clients–suffer because of your actions (or lack of action).
Which businesses most benefit from E&O liability insurance?
This most commonly involves professional advice that you give to clients. But, with some policies, it also involves unintentional violations of copyright and other intellectual property law or defamation such as libel. For companies that provide advice, E&O liability insurance may be essential. But, it may also prove to be very useful for companies that supply software and similar tools that clients might then use for their own businesses.
Coverages to Consider
Insurance agents provide services to individuals, families, businesses, and corporations by helping them find and receive the proper coverages for their insurance needs. Most agents do not consider the risk they take being involved with this profession. The suggestions you make for your client or the coverages you choose not to select may come back to you as a liability if your client feels you used poor judgment. If your client feels you did not act with their best interest concerning the policy or lack of a policy, they may file a lawsuit against you. This becomes a liability to your career, income, and possessions. If an agent does not have E&O, you risk the possibility of being held financially responsible for the damages if you are involved in a claim.
Did you know that your general liability policy does not cover you for damage arising out of manufactured products if it does not cause bodily injury and or property damage? Most policies using the standard ISO form agree to pay sums where an insured becomes “legally obligated to pay as damages because of bodily injury or property damage.” Additionally, “damage to impaired property exclusion,” which is found in most general liability coverage forms, may potentially create a significant impact on a manufacturer’s overall risk of exposure. This may leave a manufacturer with large financial losses. Manufacturers’ errors and omissions insurance is designed to cover some of the gaps in your general liability policy.
Employment practices liability protects the employer against claims made by employees, former employees, or potential employees. It may cover you for discrimination (age, sex, race, disability, etc.), sexual harassment, and wrongful termination of employment. Companies are finding that they are vulnerable from the pre-hiring process to the exit interview, even if a person was never hired or they were an employee a few days, you are open to liability. Even if a claim is groundless or fraudulent, the defense of a suit may be a financial drain as well as time-consuming.
Cyber liability, aka data break coverage, is the cutting edge protection for exposures arising out of internet and computer communications activity. Professional service firms are at risk of cyber liability. This is due to the fact that we are increasingly dependent upon the internet and computer networks for communicating with clients, performing professional services, transmitting and storing sensitive data, and maintaining websites.
Miscellaneous professional liability insurance, sometimes called miscellaneous errors and omissions cover liabilities from errors or omissions not intentionally committed during the course of offering a professional service for a fee. Miscellaneous E&O is the catchall of E&O insurance. This area of coverage varies from insurance carrier to insurance carrier. It may include media, real estate, property managers, etc. This can also include third-party administrators and claims adjusters, among others.
A good E&O liability insurance policy covers both the costs of any damages themselves and the costs of defending claims for your business. We can help you find the right errors and omissions liability insurance policy for your business. Contact us to get started.
Errors and Omissions Liability Insurance Quote Request
As an independent agency, we are here to help you find the right coverage.
Get a Quote
It only takes a minute to get started.
- Fill out the form, we’ll be in touch.
- Review options with an agent.
- Get the coverage you need.