Errors & omissions insurance
Errors and omissions insurance (E&O) often doesn’t cover the mistakes made by independent contractors working for your business. To protect yourself from lawsuits, you may want to require contractors to carry coverage.
Errors and omissions insurance covers the costs of legal disputes over professional mistakes. However, not every business needs it. Review answers to common questions about E&O policies.
Federal and state laws mandate errors and omissions insurance for certain professions. Small businesses may also need it to fulfill the requirements of a client contract or a licensing body.
Most businesses will experience a disagreement with a client or business partner over a perceived work mistake at some point, which could lead to an errors and omissions lawsuit.
When your business is accused of negligence, it's vital to act promptly and communicate effectively to reduce the likelihood of complications.
A certificate of insurance is a document that verifies you have errors and omissions coverage. It's not uncommon for clients or new business partners to ask for a copy of your certificate.
Comparison shopping, risk management, and choosing a policy with a high deductible can reduce the cost of errors and omissions insurance. Learn details about these tips and more.