Why Professionals Should Not Skimp On E & O Insurance

If you have been conducting business as a professional for a number of years, chances are you have heard the term e & o insurance thrown around by colleagues and insurance agents. While you have heard the term, you have never actually looked into what it is and why you need it. The fact that you have not been forced to research it and have been in business for years without a potential claim is a good. While this is good, the fact that you are not carrying this form of insurance is not. If you are taking a step towards educating yourself on insurance products available for your business, consider educating yourself on e & o insurance first and foremost.

E & O Insurance, more commonly referred to as errors and omissions insurance, is a commercial insurance policy that is specifically designed to protect professionals against lawsuits that may arise during the course of doing business. Just like in any industry, professionals are capable of making mistakes. Some mistakes made by professionals can cost their customers a pretty penny. While you wish you could reverse the bad advice or the default of your contract, you cannot. This error could lead to a lawsuit that without e&o insurance could put you out of business for good.

Errors and omissions insurance are specialist business liability insurance contracts that are tailored and customised the suit the needs of each and every professional. If you provide advice or offering consulting services, you have a need for e & o insurance. Some of the professional who should invest in errors and omissions insurance include real estate agents, mortgage brokers, mortgage consultants, financial consultants, personal bankers, investment professionals, insurance agents, computer technicians, counsellors, lawyers, medical professionals, and more. While these are just a few of the professionals who have a need, the list can become quite extensive. Think of it like this, if you offer advice, educate, or services that require continued education, you need e & o insurance.

Errors and omissions insurance can be purchased from commercial insurance agents and brokers. Be sure to find a reputable broker with knowledge in this area of insurance as this policy form can become very complex. Several different endorsements and exclusions should be discussed depending on your profession.

When you are obtaining quotes, start with your existing commercial agent. If you have trusted them with other commercial products, chances are you are confident in their knowledge and expertise. Make sure to compare premiums amongst insurance providers and choose a financially stable company offering competitive premiums and comprehensive coverage options. By investing in e & o insurance, you will give yourself the peace of mind you need to do your best business on a day-to-day basis.







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