Business liability insurance covers losses related to bodily injury, property damage or advertising injury. But what happens when a printer neglects to catch a typographic error on a large order of engraved wedding invitations? Or when a plumbing repair fails and causes an entire office to be flooded? Issues like these can be resolved with the purchase of errors and omissions (E&O) insurance.
What is E&O insurance?
E&O insurance is a kind of specialized liability protection against losses not covered by traditional liability insurance. It protects you and your business from claims if a client sues for negligent acts, errors or omissions committed during business activities that result in a financial loss.
Who needs E&O insurance?
You need errors and omissions insurance if you’re in the business of providing a service to clients for a fee. We typically provide E&O coverage to printers and building-trades contractors, such as electricians, plumbers, HVAC installers and sheet metal workers.
E&O insurance is typically customized to meet specific needs of a business or industry. For example, a printer has different risks than an electrician. Both have the need for liability insurance, yet each needs a completely different type of coverage.
E&O insurance policies usually cover:
- You, the business owner
- Your salaried and hourly employees
- Any subcontractors working on behalf of your business