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What is Errors and Omissions Insurance?

Nothing turns your world upside down like the fateful words “you have been served”. A lawsuit is every small business’s worst nightmare. It means damage to your reputation, having to pull away from day to day operations while you deal with the lawsuit and lots and lots of legal expenses.

So how do you protect yourself and your business?

Errors and Omissions Insurance is also commonly known as Professional Liability Insurance. This is a specific type of insurance policy that defends you and your company against liability lawsuits resulting from professional negligence and errors. Even if you have years of industry experience, there is always a small chance that you might make a mistake in your professional capacity. Ultimately a small error has the potential to negatively impact your company in a big way, both your business finances and reputation.

For example, a customer may allege you delivered a professional service that caused personal or financial damage to your customer. As a result, the client initiates a liability lawsuit against your business. In this scenario, Errors and Omissions Insurance policy will help you cover the expenses incurred while defending your business.


What does Errors and Omissions Insurance cover

Examples of when your professional liability (E&O) insurance will help your business in Florida:

  • Legal defence expenses: Items such as attorney’s fees, underwriting and documentation charges, court fees, and other administrative costs associated with defending your business against a liability lawsuit are covered under your E&O plan
  • Actual or False Negligence Claims: Your liability coverage will protect your company against both actual and alleged claims of liability that are suspected of happening while working in a professional capacity

The following items are NOT covered by your Florida Errors and Omissions Insurance:

  • Intentional malpractice
  • Fraud and dishonesty
  • Illegal acts
  • Known claims and circumstances
  • Property damage

Who needs Errors and Omissions Insurance?

Many different types of professionals need Errors and Omissions Insurance to guard their financial resources and hard-won reputations from the risk of a liability claim. Furthermore, corporations in a wide variety of fields and industries purchase Errors and Omissions Liability Insurance because they provide professional services and advice that could lead to a liability lawsuit. Attorneys, accountants, consultants and dozens of other Florida business owners keep E&O Insurance in their portfolio as a way to safeguard their reputation, business assets, and profitability from the exorbitant costs of litigation.

Professions that utilize Errors and Omissions Insurance are:

Architects Notary Publics
Consultants Real Estate Agents
Engineers Publishers
Home Care Providers and Businesses Accountant

How much does Errors and Omissions Insurance cost

The pricing for Errors and Omissions coverage is determined by a range of different factors and is, ultimately, unique to each business. However, on average, the annual premium for an Errors and Omissions policy for a Florida business is typically around $775.

The following aspects of your business will influence your Errors and Omissions Insurance premium:

  • The liability limits you select: For example, the higher the protection purchased ($2M versus $1M) will definitely change-up the premium cost.
  • Annual revenue: Large, costly, complicated projects increase the risk of being sued and the insurance carrier will take that into consideration when setting premium amounts.
  • Annual payroll, staff size, employee licensing and experience
  • Type of occupation: some professions are simply riskier than others and the insurance costs reflect that difference.
  • Credit and legal history

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Regina. (Real Estate Agent from Florida)

Simple, direct, and to the point. Very clear and immediate policy coverage-Thank You

Jennifer. (Photographer from Florida)

Always enjoy working with this company and its ease to get things done! Congrats on always making customers get on track!

Oscar. (Software Developer from Florida)

You make doing business with you easy…

Jeffery. (Human Resource (HR) Consultant from Florida)

User friendly and easy to understand. Glad to have coverage for my business.

Jacqueline. (Interior Decorator from Florida)

Great ease in the process. Very quick and affordable. The high ratings and reviews were a big plus and ultimate reason we chose this company.

James. (Training Consultant)