Errors and Omissions Insurance
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What is Errors and Omissions insurance?
An Errors and Omissions insurance policy (also known as E&O or Professional Liability insurance) is an essential policy that protects you and your company in case of a lawsuit due to alleged professional wrongdoing.
According to the U.S. Small Business Administration Office of Advocacy (SBA), California had over 1 million small businesses as of 2022. These businesses accounted for 99.6%, but they are steadily increasing.
No matter what industry you’re in, or what products you sell, there are chances to make mistakes. You may have a solid track record, but one mistake could lead to a lawsuit.
Errors and Omissions insurance may be necessary to assist small business owners in protecting their future finances in a highly competitive marketplace. Errors & Omissions insurance protects your business from claims that result from your negligent actions (errors), or insufficient services (omissions).
What does Errors and Omissions insurance cover in PA?
Errors and Omissions insurance in Pennsylvania covers you for a wide range of expenses up to the maximum amount in your insurance contract. This insurance could help you to save on expenses like:
- Legal Costs – Lawyers usually charge an hourly. Even if your case is resolved quickly it is costly to get good legal counsel. You will pay more if the case takes longer to resolve.
- Court Costs – File documents with the court and pay underwriting fees, administrative costs, as well as any other legal expenses.
- Settlements– In order to save money on long-drawn out litigation, claims are usually settled outside of court. Your legal counsel might advise you to pay a fixed amount.
- Judgments If you win your case, or if the judge rules against the plaintiff, you must pay the amount or risk a lien being placed upon your business assets.
Who may need Errors and Omissions insurance?
Errors and Omissions insurance is often considered by businesses and professionals who provide advice, educated suggestions, and designing solutions to clients.
No matter whether the claim is genuine or baseless, Errors and Omissions insurance will protect both your professional reputation and your business assets from costly consequences.
Professions that are most likely to require Errors and Omissions insurance include, among others:
|Home Care Providers and Businesses
How much does Errors and Omissions insurance cost in Pennsylvania?
In Pennsylvania, the average cost of E&O insurance is $623 per year. But, this depends on the nature of your business. As with most insurance, the higher your risk level, the more premium you’ll likely have to pay.
The following factors may impact the cost of your Errors and Omissions coverage:
- Your business’s location, priorities and risk appetite
- Your business’s turnover and size
- The level of insurance coverage you need
- Previous claims history, if any
- The people being covered: their qualifications, suitability and history of claims
Is Errors & Omissions coverage included under a General Liability policy?
A policy that covers General Liability events does not cover Professional Liability claims. General Liability covers bodily injuries and property damage that is caused by customers or vendors. Your services could be liable for errors, missed deadlines or other circumstances if you only have General Liability coverage.
Continue reading: Errors and Omissions vs. General Liability insurance
How to get Errors and Omissions insurance in Pennsylvania?
BizInsure makes easy to compare E&O policies from top-rated U.S. insurers, and to find suitable coverage for your small business at an affordable cost.
Learn more about E&O insurance in the states where you work.
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