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What is Errors and Omissions Insurance

According to the U.S. Small Business Administration (SBA) Office of Advocacy, as of 2019, there were 4 million small businesses in California.  While they accounted for 99.8% of all the state’s businesses, these figures are steadily on the rise.

Regardless of which industry you are in, the type of products you sell, or the nature of the services you provide, there are always possibilities to make mistakes. While you may have an excellent track record, all it takes is one error to bring a lawsuit against your business

Therefore, in a highly competitive business environment, where clients are increasingly becoming more exacting in their demands, Errors and Omissions Insurance, which is also called Professional Liability Insurance, is needed to help small business owners to protect their future finances. Errors and Omissions Insurance covers your business against claims as a result of your negligent actions (errors) or inadequate services (omissions).

What does Errors and Omissions Insurance cover

In California, Error and Omissions Insurance covers a range of expenses, up to the limit specified in your insurance contract. It will help you save:

  • Legal Costs – Lawyers typically charge an hourly fee. Hiring good legal counsel is expensive, even if your case is resolved quickly. So the longer the issue takes to get resolved, the more you have to shell out.
  • Court Expenses – Filing documents with the court, underwriting charges, other administrative costs, and any related legal expenses.
  • Settlements – To facilitate saving both parties money from expensive long-drawn-out litigation, usually claims are settled out of court. Depending on what your legal counsel advises, you might have to pay the client a certain amount.
  • Judgments – In the eventuality your case does go to trial, and if the judge rules in favour of the plaintiff, you will have to pay the adjudged amount or run the risk of a lien being placed on your business assets

Who needs Errors and Omissions Insurance?

Businesses and professionals whose work pertains to providing clients with advice, educated recommendations, designing solutions or those who represent the needs of others should get Errors and Omission Insurance.

Regardless of whether the associated claim is legitimate or baseless, Errors and Omissions Insurance will protect your professional reputation, your profits and business assets from potentially expensive consequences.

Professions that typically need Error and Omissions Insurance include but are not limited to:

Architects Personal trainers
Consultants Pilates instructors
Engineers Notary publics
Home health providers and businesses Yoga Instructors

 

How much does Errors and Omissions Insurance cost

In California, though the annual average cost of Error and Omissions Insurance is approximately $773, it depends on the nature of your business. As with all other insurances, the higher the element of risk, the more premium you will need to pay to cover that risk.

Factors that will determine the cost of your Errors and Omissions are:

  • Your business’ priorities, location and risk appetite
  • Your business’ turnover and size
  • The amount of insurance cover you need
  • Your previous claims history, if any
  • The individuals being covered – their qualifications, suitability for the job and if they have any history of claims
BizInsure LLC
4.3
Based on 36 reviews
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
Lisa Word
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda hale
rhonda hale
23:26 12 Nov 20
Owner
Owner
23:19 06 Nov 20
Cincere Browdy
Cincere Browdy
15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
Aileen Day
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
Michele Harris
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope jones
hope jones
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela Curry
Pamela Curry
16:45 24 Aug 20
Cameron Peek
Cameron Peek
19:25 24 Jul 20
Great and fast service!!!! The representative was very professional!!!!
Tanya Sweet
Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy Smith
Jimmy Smith
19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
James Lang
18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda Gray
Rhonda Gray
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
Paul Rising
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
Kristene Smith
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
Fre Hall
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn Torres-Gale
Dawn Torres-Gale
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
Graham Blair
22:12 23 Jun 17

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