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As a small business owner, you realize that people make mistakes; you also realize that not everyone forgives them. That’s why it’s important to have errors and omissions insurance, in the event that a client claims a financial loss for your company’s error, omission or otherwise negligent act.

Errors and omissions insurance definition

E&O insurance generally protects service businesses from errors and/or omissions made by a business owner, employee or contractor working on behalf of the company.

Once upon a time, there was a distinction between errors and omissions insurance and professional liability insurance. It used to be that doctors and lawyers bought professional liability insurance, while E&O insurance was reserved for semi-professional occupations. Today, the two coverages are generally synonymous.1

How much does errors and omissions insurance cost?

As with any insurance, the cost of E&O insurance depends on a number of factors, including your business type and location.

What does E&O insurance cover?

E&O insurance generally covers judgments, attorney fees, court costs and settlements – up to the limits of the policy.

Whether you’re a printer, a plumber or some other professional who provides a service for a fee, you likely need errors and omissions liability insurance. For more information, or to get a professional liability insurance quote, contact your local agent or call Nationwide at 1-888-490-1549.

[1] http://smallbusiness.chron.com/differences-between-eo-professional-liability-80340.html

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The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided.