Errors and Omissions insurance for Michigan small businesses
The Great Lakes State is home to nearly 912,000 small businesses or about 99.6% of all businesses in the state. If you work for yourself, you might benefit from the protection provided by Errors and Omissions insurance for Michigan small businesses.
Errors and Omissions insurance protects your business against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors.
Keep reading to learn how to find the best coverage for your small business and compare multiple quotes online with BizInsure.
What is Errors and Omissions insurance?
Lawsuits are serious matters, especially for small business owners. Unexpected legal expenses can make a large dent in your daily cash flow and savings account. Needing to defend your business means less time spent on running your day-to-day operations. Potential damage to your professional reputation may be hard to bounce back from.
That’s where an Errors and Omissions policy can be useful.
An Errors and Omissions (E&O) insurance policy is an essential type of coverage that protects you and your company in case of a lawsuit due to alleged professional wrongdoing. Sometimes called Professional Liability insurance, these policies help protect your finances and your business reputation.
You may also see E&O insurance sold as Michigan malpractice insurance if you are looking for a policy to cover a home health aide or home health agency.
What does E&O insurance cover in Michigan?
Errors and Omissions insurance in Michigan helps shield small businesses against professional wrongdoing, such as:
- Mistakes, errors and omissions in your work
- Undelivered services
- Missed deadlines
- Allegations of professional negligence
- Breaches of contract
E&O policies typically cover the costs of defending your business in court, such as your legal defense fees, court costs, and other admin fees. It may also cover settlements or judgements that result from legal action.
Who needs E&O insurance in Michigan?
Errors and Omissions insurance in Michigan can help create a vital safety net for many types of small businesses. You might want to consider E&O insurance if you are regularly:
- Providing clients with advice or recommendations based on your professional knowledge
- Designing custom solutions
- Representing your clients’ interests on their behalf
- Have employees who do any of the above
The coverage provided by E&O insurance may be important for a diverse list of occupations—from accountants and engineers to real estate agents and consultants.
Compare multiple quotes online now and get instant coverage for your small business.
Is Errors and Omissions Insurance required In Michigan?
Michigan business insurance requirements do not require businesses to have E&O insurance. However, a policy may be necessary to receive certain professional licenses and to join some industry associations. Visit the State of Michigan or your association’s website for more information on industry insurance requirements.
Even if you are not required by law to have E&O insurance, it may still be necessary to work with some clients. They may include minimum coverage requirements in their business contracts that you are obligated to meet.
How much does Errors and Omissions Insurance cost in Michigan?
The price of E&O insurance varies between businesses, even those working in the same industry. This is because insurance companies consider many factors when they calculate your premium. Information commonly used to determine insurance premiums includes:
- Your occupation and/or the industry you work in
- Your business’ annual revenue
- How many employees will be covered by the policy
- Your employees’ licensing and experience
- The amount of coverage you choose
- Your history of claims
One way to understand how much you can expect to pay for E&O insurance is to compare multiple quotes online. Seeing what different insurers can offer could also help you find the best coverage for your small business needs.
The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
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