Of all the personal insurance services in Salt Lake City and coverages that businesses need, errors and omissions coverage is one of the most important. When you have two parties working together, there may be miscommunications, misunderstandings, and forgotten services. Errors and omissions, or Professional Liability Insurance or Malpractice Insurance, protects your business against lawsuits and accusations that you have misled your client and caused harm to them or their business.
Errors and omissions insurance (E&O) also covers you personally if you neglect, miscommunicate, or misinform a client when performing a service. You can receive coverage that covers bodily injuries and property damages sustained if the damages result from you failing or providing harmful professional services.
As an example, E&O insurance protects a doctor against catastrophic malpractice suits both professionally and personally. Another example? An attorney may be protected against wrong decisions, misinformation, or shoddy practices when providing services to clients. E&O insurance coverage is designed to protect professionals that have a high degree of specialized knowledge or skills. Included are attorneys, physicians, accountants, architects, and even engineers. To protect yourself if you are associated with any of these professionals, you will also need to stay abreast of new changes in your industry and well as renew licenses and keep certifications up to date.
Check with your insurance services in Salt Lake City for advice on how much coverage you will need. It is important in today’s world that any company that is a service business and that receives payment for its services have E&O coverage. Non-traditional E&O categories in the business climate of today also include:
- Media companies
- Financial institutions
- Insurance companies
- Staffing companies
- Technology Providers
- Research companies
- Life sciences laboratories
- Pubic relations
- Advertising firms
- Web-based businesses
The above list covers just about any business that provides a service or advice to clients. Check with your regulatory body to ensure that you do or do not need E&O insurance coverage. Personal insurance services in Salt Lake City will be happy to sit down with you and determine your needs.
What Does E&O Insurance Cover?
E&O insurance is designed to offset costs that come from lawsuits that occur when you give misleading advice, are negligent, or something goes wrong, and injury occurs to your client. Realize that any service or advice you give could be misconstrued by your client and they could proceed with a lawsuit. Some types of injuries or miscommunications could include:
- Accountants who make errors in financial statements audit or are negligent in tax filings.
- Advertising agencies can be sued if they present ad campaigns that fail to live up to their promises or is offensive.
- Physicians who give an incorrect diagnosis, perform a surgical error or cause harm with a treatment.
- An attorney can be sued if the client perceives a conflict of interest, failure to know the law or misrepresentation of the facts.
- Travel agents are liable if they neglect to outline the dangers of a destination, and a client is injured.
- Wedding planners need E&O insurance in the event of date mix-ups, or third-party vendor complaints.
- General contractors need E&O insurance to cover any perceived fault in the workmanship, improper selection of materials, or any pollution incidents.
Errors and omissions insurance coverage is “claims-made.” Claims-made means that you are covered for the mistakes or errors that happened while you have coverage. If your client sues for services or work you did in the past, you are not covered for that incident.
Go over your policies with your personal insurance services in Salt Lake City. There are areas where you will not be covered, and it is important to know these limitations. Note that you will not be covered for any intentional wrongdoings or harm if anything you do is malicious. You cannot recover damages for illegal acts or guarantees or warranties. Employee injuries are not covered nor is property damage or your services as a director or the officer of a company.
What is the Cost of E&O Insurance?
To find out what E&O insurance will cost you or your company, contact your personal insurance services in Salt Lake City, Risk Managers LLC, for an accurate quote. The cost of your insurance policy will vary and is determined by your business type, claims experiences, and the insurance company. Underwriters of an insurance company will also need copies of your contracts, standard operating procedures, and documentation on the work you were hired to do.
Keep your costs of Errors and omissions insurance down by making sure you keep good records, negotiate well-written contracts that are signed by all parties, and manage client expectations to ensure that there are no “surprises.” Keep in contact with your client. Communication with your clients and your personal insurance services in Salt Lake City will help protect you should any problems arise.