Errors & omissions insurance
If a dissatisfied client sues your business over a work mistake, errors and omissions insurance can cover your legal expenses, including the cost of a settlement or judgment.
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.
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.
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.
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.
When your business is accused of negligence, it's vital to act promptly and communicate effectively to reduce the likelihood of complications.
Learn about what information you'll need and consider coverage options before you apply for E&O insurance. Compare quotes online from top-rated carriers for free with Insureon.