Why Errors and Omissions Insurance is important for Professionals?
Many self-employed professionals and small corporations do not realize how vulnerable they are if they do not carry an errors and omissions (E&O) insurance insurance policy in addition to their general liability insurance. This type of insurance protects an individual if they make a mistake that causes their client a financial loss or end up in court for liability claims that the professional work they performed was unacceptable. Errors and omissions insurance can help defray the cost of attorneys and any financial settlement up to the limits of the policy. Even if a claim that has been made against you is found without merit, thousands of dollars in legal fees can accumulate. E&O insurance offers financial protection to both the company and the individual.
Many career professionals should consider such a policy. Everyone knows doctors and lawyers need this type of policy and it is sometimes called malpractice insurance for these careers. But many other career professionals should have this coverage including financial planners, realtors, photographers, architects, plumbers, and landscapers. Anyone who provides a professional service should carry this insurance. You can avail the E&O insurance policy depending on the industry, state, size, and history of the company. Therefore, it does not matter whether you are heading a big organization or small organization you will get the E&O insurance policy.
When purchasing an errors and omissions insurance policy it is important the professional has the most appropriate policy. The language and coverage of policies vary greatly so professionals need to take the time to find the appropriate plan. The cost of a policy can also vary greatly. Considerations that are used to determine the cost of a policy are based on many variables including the type of business, where the business is located, and the past history of claims. The past history of claims means not only for the specific individual but also the history of claims for the particular line of work. Costs of policies also vary greatly. A good place to start looking for the best price for a policy is a professional organization or union that is affiliated with the specific career. Prior to make any final decision of purchasing, one should search online and compare features vs. prices. This will ensure that you will get the best value of your money.
E&O insurance provides professionals with financial peace of mind. Everyone makes an "honest" mistake. Such a mistake should not cause a career professional to suffer huge financial losses and even the loss of their business. Errors and omissions insurance protect this from happening.
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About the Author
The author of this article has served insurance sector for many years. He possesses the vast knowledge of different insurance plans. This article has been written to provide information about E&O Insurance Plans.
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