A business that offers advice, whether in a consultancy capacity or otherwise, or any specialist services such as accounting or real estate would be well advised to purchase an errors and omissions (E&O) insurance policy. But what exactly is this and what will it cover you for?
Errors and omissions insurance falls into the category of professional indemnity insurance along with malpractice insurance. It will protect a professional or business against any mistakes and misunderstandings, errors and omissions made that result in loss or damage to clients and third parties. So what is the best way to go about purchasing it? Here is some advice:
Find a good insurer
This is a no brainer, but commercial insurance agents will be able to help here or you could seek out an independent company that specialises in error and omissions policies.
Ensure you are getting the best deal and coverage for you and your business needs for the best price. The internet is a great tool for comparing prices and making sure you know exactly what you’re getting for your money.
Understand your options
Talk to your agent if there is something you don’t understand. They will help you decide which policy is best for you and will talk you through coverage and premiums available. These depend on the type of business you have, your risks and how many employees you have among other things. Make sure you understand it all before making a commitment.
Use good business practice
Put all communications and contracts in writing to ensure you always have a record of your dealings. This may bring your premium quote down as there will be less of a risk of error and omission claims.
Go back over your policy from time to time. Have your needs changed? Do you need a higher amount of cover? What about a lower amount? Check you don’t need an update and don’t get caught out.