Does your business need the protection offered by E&O insurance?
As a business owner, it is your responsibility to protect your company from the many risks that it faces. One of the best ways to accomplish this is by securing the proper commercial insurance protections. One such policy is errors and omissions insurance. Read on to learn more about this type of coverage and to determine if your business needs this type of insurance.
What is E&O insurance?
E&O insurance is designed to protect businesses in the event that they are accused of making a mistake while rendering their professional services that results in financial losses to the client. E&O insurance will cover the legal fees and settlement costs associated with a client’s claim against your company.
What does it cover?
E&O insurance offers coverage for claims of alleged breach of duty, acts of negligence, errors, omissions, or personal injury. For instance, imagine that you are in the construction business and you make a mistake while designing a home. As a result of your mistake, the home’s roof caves in, damaging several of the homeowner’s personal possessions. In this example, E&O insurance would cover the cost of repairing the client’s roof, as well as the expense of compensating them for their damaged belongings.
Who needs this coverage?
Certain businesses are required to carry E&O insurance by local and laws. For instance, businesses in the following industries are required to carry this coverage:
- Insurance agents
- Home health aides
- Social workers
Even if your state does not have laws requiring you to carry E&O insurance, you are still highly encouraged to secure this type of coverage to protect your business’s assets.
This is what you need to know about E&O insurance. Do you have additional questions regarding your commercial insurance needs? If so, contact the experts at Randy Jones Insurance Services in Pleasanton, California. We are ready to assist you with your business’s insurance needs today.