A wide variety of companies need errors and omissions (E&O) insurance. This type of professional liability insurance offers protection against inadequate work and negligent action claims. As a business owner, you want to protect yourself, your workers and your company to the best of your ability. With this being said, you might need to get E&O coverage to achieve optimal protection. If you want to know which businesses benefit the most from this coverage, keep reading to discover who needs errors and omissions insurance.
Firstly, architects need errors and omissions insurance to protect themselves effectively. The daily life of an architect entails working directly with clients and other professionals. Unfortunately, the clients and professionals that architects consult with on a daily basis are not always pleased with their work. Hence, architects are at risk of dealing with legal claims. If a client feels that their architect did not produce the blueprints that they promised, the client may resort to filing a claim. Without E&O coverage, architects jeopardize their hard-earned profits. They risk losing the capital they earned through architecture marketing and sales. After all, court fees alone are costly without coverage. Architects who want to avoid paying expensive legal fees need errors and omissions insurance.
Real Estate Agents
Real estate agents also need errors and omissions insurance. When a client files a claim against an agent, they can also file one against their brokerage. For this reason, most real estate brokers include this type of coverage in their agents’ service packages. Then, the entire firm maintains protection to a certain extent. Like all insurance policies, E&O coverage has exclusions. If a real estate agent performs a criminal act against a client, they cannot use their policy for protection. Moreover, agents should understand that their employers choose the policy. They do not have a say in the errors and omissions insurance, but they need it nonetheless.
Moreover, bookkeepers with errors and omissions insurance avoid paying expensive legal fees as well. Unfortunately, bookkeepers do make mistakes. These mistakes can lead to major financial issues for their clients. If a bookkeeper incorrectly records a day’s worth of financial transactions for a business client, they could incorrectly change the client’s taxes. Because taxes play a major role in a company’s financial status, business clients put in this situation usually file lawsuits against their bookkeepers. Even if you offer top-notch small business bookkeeping services, you need coverage for these types of situations. With errors and omissions insurance, you can protect yourself whether you have made a mistake or not. If you are a bookkeeper, you need E&O insurance for this reason.
Because contractors service clients on a regular basis, they also need errors and omissions coverage. Similar to the other professions on this list, contractors are always at risk of leaving a client displeased. A contractor could produce their best work on a client’s home and still deal with a claim. Many clients even file lawsuits against contractors when they complete tasks on time and in the right ways. The simplest issues with clients can turn into major, costly legal disputes. Whether you perform commercial roofing or offer remodeling services, you need E&O insurance if you are a contractor.
Furthermore, lawyers need to acquire E&O insurance if they want to achieve optimal coverage. While it may sound contradictory, even professionals who defend others in the court of law need lawsuit protection. Many lawyers receive poor feedback from their clients when they lose cases. This is true for lawyers who performed their tasks poorly and those who did everything right. If you are a lawyer who wants protection from negligence claims, poor performance disputes and claims of errors in judgment, you need errors and omissions insurance.
Business owners in various industries obtain errors and omissions insurance to protect themselves and their workers. As a business owner yourself, you need to determine whether you need this type of coverage or not. Architects need it to avoid paying expensive court fees. The same goes for real estate agents who fail to please their clients. Because businesses rely heavily on their bookkeepers’ expertise, these financial professionals need this type of coverage as well. If you are a contractor, consult with your insurance provider about E&O coverage. Finally, lawyers also benefit from this coverage. These are the main types of professionals who need errors and omissions insurance.