No individual or business is immune to mistakes, so it is necessary for your company to carry Errors and Omissions Insurance. This type of policy, also known as E&O Insurance and/or Professional Liability Coverage, provides protection from legal claims alleging errors in your professional services. At Blue Lion Insurance Advisors, LLC, where we pride ourselves on making our clients’ interests our top priority, we are well-prepared to assist you in obtaining the type of E&O Insurance best-suited to your needs.
Call us at (732) 649-1600 or contact us online to enjoy the benefits of dealing with experienced insurance advisors who are not on any particular insurance carrier’s payroll. We have comprehensive knowledge of all available E&O policies and will help you choose the one that offers you the best value.
The Distinction Between E&O Insurance and Professional Liability Coverage
Though these terms are often used interchangeably, the difference is related to what type of business is seeking coverage. Professional Liability Insurance may be crafted for small businesses, such as beauty salons and other businesses offering esthetic services, whereas Errors and Omissions Insurance is usually purchased for more financially framed companies.
As an example, an accountant would shop for E&O Insurance and a cosmetologist would shop for Professional Liability coverage. For the former, the error might involve having filled out a tax return incorrectly. For the latter, the mistake might involve having applied a chemical peel that permanently damaged the client’s skin. For the remainder of this content, we will make E&O Insurance the inclusive term.
What does E&O Insurance cover?
Basically, E&O Insurance is designed to cover your attorneys’ fees, court costs, and negotiated settlements or judgments if you are found liable for:
- Improper services
- Unreliable advice
- Lack of good faith and fair dealing
Does your company need E&O Insurance?
Contact our skilled insurance advisors so we can determine whether E&O insurance is necessary for your company. Generally speaking, any business that services customers or clients should carry errors and omissions insurance, including:
- Advertising firms
- Consulting companies
- Engineers and engineering firms
- Financial advisors
- Hair and beauty salons, barbershops
- Hospitality businesses
- Insurance agents
- Marketing firms
- Pet groomers and veterinary practices
- Printing and publishing companies
- Website developers
- Wedding planners
As you can see, most businesses require E&O Insurance to protect them from liability claims.
E&O Insurance Doesn’t Cover Everything
It is important to be aware that any insurance product has its limits. E&O Insurance, for example, does not cover:
- Bodily injury or property damage (for these you require General Liability Insurance)
- Claims relating to events before your policy’s retroactive date or after its extended reporting period
- Criminal acts or intentional wrongdoing (fraud or deceit)
- Employees’ work-related injuries or illnesses (these are covered by workers’ compensation)
- Workplace harassment or discrimination lawsuits filed by employees
Factors that May Affect the Cost of Your E&O Insurance
As with all insurance policies, the price of your coverage will depend on:
- How much coverage you opt for (the more coverage, the higher the premiums)
- The risk of your particular business as determined by statistics and algorithms
- Your business’s history of liability claims
- The location of your business (states with higher minimum coverage requirements generally have higher insurance rates)
Like your own business, insurance companies have a bottom line to protect, so the premiums you pay will depend on how high a risk they believe your business to be. The higher they assess their risk, the more the E&O policy is likely to cost you. Nonetheless, working with Blue Lion Insurance Advisors, LLC puts you at a sizable advantage since we have access to the competing rates of all insurers offering E&O policies.
Contact us today (732) 649-1600 or contact us online to get the Right Insurance Coverage, at the Right Price with Superior Client Service. That’s the heart of Blue Lion Strong™!