Errors and omissions insurance refers directly to businesses that offer professional advice. If a client feels that they were offered incorrect guidance, or they find that their advisor omitted information, they have the right to sue your business. This may happen even if damages to client were completely unintentional, and your business thought that they were offering the best information at the time. Responsibility may still lie on your business. Errors and omissions insurance can cover all negligence claims made against your business. Even if the claims are found to be groundless, your business will still need an errors and omissions plan to pay for the defense of your suit.
Errors and omissions insurance is important for these kinds of professions:
Even if you are not in a profession listed above, your company may still need coverage. Everyone makes mistakes and it is a good idea to be prepared for anything that is unexpected.
While errors and omissions insurance may cover a majority of mistakes, your business may still need professional liability insurance plans to cover any other actions made by your business. Make an appointment with an agent to talk about what is covered in each plan and what your business needs to be fully covered when it comes to any civil lawsuits.
If you are a business that offers a service or creates a product, it may be in your best interest to invest in professional liability insurance. Professional liability insurance especially protects businesses that offer advice. If a client feels that the advisor had offered bad guidance or that a business has built an inferior product, they have the right to sue the company. Professional liability insurance will cover the costs of a negligence claim or a civil lawsuit.
If your business designs custom made products it may be important to invest in this insurance. If your product does have some faulty design, though it may not cause damage to a person or property but the product itself breaks, your business will need a professional liability insurance plan to cover costs of redesigning, repairing or replacing the product.
Professional liability insurance can include malpractice insurance – for doctors and physicians – as well as errors and omissions insurance – for any businesses that offer professional advice. These insurance plans cover any claims made against any information or guidance given to clients that may have caused damages.
Talk to a Nickerson Insurance agent about how our professional liability insurance can cover your business and the work that your company does. Nickerson prides itself on its personal service and finding the best insurance plans. We know that we can help you feel secure with our great coverage.
