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.