E&O Coverage – Vital To Professional Services Companies
When you invest in professional liability E&O coverage, you protect your business and reputation against lawsuits.
Whether real or perceived, Errors & Omissions Insurance (E&O) helps fund legal expenses when you’re sued over professional mistakes, work miscalculations or missed deadlines. E&O insurance is most popular among professional service industries including:
– Information Technology
Since society is unfortunately becoming progressively more litigious, protecting yourself against legal action just makes good sense. People never expect a claim like this to happen, but when they occur, the consequences can be catastrophic – both personally and professionally.
Who Needs E&O Coverage?
The coverage is appropriate for firms or individuals that give advice on technology, make educated recommendations in software, is accused of negligence, has caused personal injury or monetary/punitive damages. To be eligible for this specialized insurance, candidates must provide proof of licensure in their “covered class of business.”
Examples Of Potential Damages Claims:
– Breach of contract
E&O Policy Coverage
E&O coverage enters where commercial general liability policies don’t provide coverage for things such as service errors, contract performance disputes or any other professional liability issues. The coverage also provides for defense costs, which can be substantial even if liability does not result. Note: policies usually do not provide coverage for non-financial losses or for intentional or dishonest acts.
Most Common Policy Options Available From TelePay Insurance:
Alleged Negligence – E&O insurance coverage is strongly recommended to protect your business from claims alleging negligence from your professional services including failing in your “duty of care”, giving incorrect advice or making mistakes.
Personal Injury (e.g., Libel or Slander) – Protects you against personal injury claims (e.g., libel or slander) that arise while rendering your professional services.
Copyright Infringement – Customizes your errors and omissions insurance coverage for the specific needs of your business.
Temporary Staff and Independent Contractors – Covers claims arising from business-related services completed by your employees, temporary staff and independent contractors.
Claims and Damages – Covers claims for monetary damages and non-monetary relief, and punitive damages where allowed by law.
There are a variety of professional liability insurance and multiple factors to consider when purchasing E&O coverage for your business. TelePay Insurance Agency offers general liability coverage and expert advice. Let us help you discover what coverage is right for your company. To learn more about this valuable resource, contact TelePay Insurance at: 800-977-2976 or send us an email.