Errors and Omissions (Professional Liability) insurance for your New Jersey business
The Garden State is home to over 953,000 small businesses, according to data from the U.S. Small Business Administration Office of Advocacy.
Errors and Omissions insurance in New Jersey may be an important form of coverage for many small businesses in the state’s top five industries:
- Professional, Scientific, and Technical Services
- Real Estate and Rental and Leasing
- Transportation and Warehousing
- Health Care and Social Assistance
No matter your job or industry, Errors and Omissions insurance could help you create an important safety net for your business and professional reputation.
What is Errors and Omissions Insurance?
Also known as Professional Liability insurance, an Errors and Omissions (E&O) policy protects your business against claims of negligence, misrepresentations, or mistakes. E&O claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
Lawsuits are often a nightmare for small business owners. They create unneeded legal bills and pull you away from the day-to-day tasks of running your business. Plus, a lawsuit could potentially damage the professional reputation you’ve worked hard to build.
That’s why many small business owners in the Garden State choose an Errors and Omissions insurance policy to help protect their business, bank accounts, and reputation.
What does E&O insurance cover in New Jersey?
Errors and Omissions insurance in New Jersey helps protect businesses against claims and lawsuits that are caused by common types of professional wrongdoing. This typically includes things like:
- Errors or mistakes in your work
- Unintentional omissions in your advice or recommendations
- Missed deadlines and undelivered services
- Professional negligence
- Breaches of contract
E&O insurance policies cover legal defence costs resulting from liability lawsuits. This usually includes your attorney’s fees, court fees, documentation charges, and other costs associated with defending your small business. It may also cover settlements and judgements you are ordered to pay.
Who needs E&O insurance in New Jersey?
There are many businesses that may benefit from having an Errors and Omissions policy in New Jersey. For some industries and occupations, you may even be required to have a minimum amount of coverage.
Businesses that perform a professional service, provide advice to clients, act on a client’s behalf, or design custom solutions often consider an E&O policy to help protect themselves. This includes businesses such as:
Is Errors and Omissions Insurance required In New Jersey?
New Jersey business insurance requirements mandate that certain occupations buy E&O insurance. This is often a requirement to obtain and renew certain professional licenses.
Check the NJ state government website for more information on possible E&O insurance requirements for your business. You can also check with any professional associations you are a member of to understand your insurance responsibilities.
Even if you are not required to have Errors and Omissions insurance in New Jersey, a policy could still be helpful. Clients may request proof of insurance before working with you. E&O insurance can also show clients that you are professional and value your business reputation.
How much does Errors and Omissions Insurance cost in New Jersey?
Every business is unique. Insurers consider a range of factors when calculating E&O insurance premiums. This means that the cost of a policy will likely vary from business to business, even for those working in the same industry.
Your Errors and Omissions insurance premium may be affected by:
- Your occupation or industry
- Annual revenue
- How many employees will be covered by your policy
- Your employees’ experience and licensing
- The amount of coverage you choose
- Your past claims history
To find the best coverage for your small business, consider comparing multiple quotes online. This could help you better understand the coverage available to you and how much you can expect to pay for a policy.
Frequently Asked Questions
Is E&O insurance the same as Professional Liability?
Yes. Errors and Omissions insurance is sometimes sold as Professional Liability.
You may be more likely to see E&O insurance if you work in certain industries, such as:
- Real Estate – Learn more about New Jersey real estate Errors and Omissions insurance.
- Home Health – Learn more about New Jersey malpractice insurance or E&O for medical professionals.
- Notary Publics – Learn more about Errors and Omissions for notary publics.
How can I get a certificate of insurance?
A certificate of insurance is sent directly to your inbox when you purchase a policy through BizInsure. Additional certificates of insurance can be downloaded from your online account.
The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
© Copyright 2023 BizInsure LLC, 2015 ALL RIGHTS RESERVED BizInsure LLC; CA DBA: Simple, Smart, BizInsure Insurance Agency LLC; NY DBA: BizInsure Services LLC; NH DBA: Simple, Smart, BizInsure Insurance Agency; PA DBA: BizInsure Services LLC. 2950 Buskirk Ave Suite 300, Walnut Creek CA 94597. License #0H81929