The value of Errors and Omissions Insurance is that it protects you if your client claims that something you did on their behalf was done incorrectly, and that this error cost them money or caused them harm in some way. Commercial General Liability does NOT provide coverage for errors, contract performance disputes or any other Professional Liability issues. Errors and Omissions covers legal defense costs and will pay for any resulting judgments against you, up to the coverage limits on your policy. It extends to both W2 employees and 1099 subcontractors.
Any company which gives advice, consults, makes recommendations, designs solutions or represents the needs of
others needs professional liability protection.
Examples are:
- lawyers
- teachers
- consultants
- doctors
- software developers
- advertising agencies
- website developers
- placement services
- accountants
- home or boat inspectors
- real estate agents
- appraisers
- financial consultants
- architects
One great way to protect your company is to have a formal contract. But the major expense with an errors and
omissions claim is your lawyers fee needed to prove your case. Errors & Omissions policies cover most if not all of these defense costs and ultimately the final judgment if the business owner does not win the case. Since lawyer’s fees
can be very high, this insurance can protect your cash outlay.
|
