Everyone makes mistakes. But can one little mistake cost you thousands? Or even hundreds of thousands? If you don’t have errors and omissions insurance, it is possible for you to be out a great deal of money. Errors and omissions (E&O) insurance is also called professional indemnity insurance (PII) or professional liability insurance (PLI). With the multiple names for errors and omissions, there are also multiple practice areas. For doctors, physicians, chiropractors, etc. it is generally called malpractice insurance. For lawyers, architects, and engineers it may still be called professional liability. You should consider getting errors and omissions insurance if you provide a professional service, regularly give advice to clients, or if your client requests that you have it for contractual purposes.
Errors and omissions is a type of liability insurance that helps protect you, if you give professional advice, from bearing the full cost of defending against a negligence claim and from paying full damages awarded in case of a civil lawsuit. It will protect you whether or not you make a mistake. Basically it protects you if your client holds you responsible for a service that you provided or were supposed to provide that didn’t have the expected or promised results. It is designed to cover any of your financial losses rather than liability for bodily injury (BI) or property damage (PD).
Everyone makes mistakes and you are bound to mess something up. Even if you have the best employees in your industry and have the best risk management practices, mistakes will be made. You need to make sure that you are protected. If you are in the shipping industry and ship a product to Alaska instead of Alabama, your client could lose that sale. Who will pay the loss? If you are a wedding planner and schedule a wedding on August 29 instead of August 22, the caterer and other crew will show up but the wedding party and their guests aren’t there. Who will pay? The bride would turn into a bridezilla, and she won’t pay. These types of losses aren’t covered under a general liability policy.
The best time to have errors and omissions policy is before something happens or before you put yourself into any type of risk situation. In many cases, it will give your clients their peace of mind knowing that they will be compensated in case of an error or omission. To make sure that you understand your policy options, you need to have an insurance company that will walk you through the possibilities and thoroughly explain every step to you. You need David Ison & Sons Insurance in Houston. Call them at 210-490-1494 for answers to any questions you may have or to schedule an appointment.