What is Errors and Omissions Insurance?
Data from the Small Business Administration’s Office of Advocacy shows that the Ocean State is home to over 108,000 small businesses. These companies represent a diverse list of occupations, including real estate agents, notary publics, general contractors, and home health aides.
Regardless of industry, many of these businesses could benefit from having small business insurance in Rhode Island, including Errors and Omissions insurance.
Also known as Professional Liability insurance in Rhode Island, Errors and Omissions (E&O) insurance protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
Keep reading to learn more about Errors and Omissions insurance in Rhode Island and how to compare multiple quotes with BizInsure.
What does E&O insurance cover in Rhode Island?
Errors and Omissions insurance in Rhode Island provides important coverage for professional service providers. Policies typically cover events such as:
- Errors, mistakes, or omissions in your work
- Underdelivered services and missed deadlines
- Unintentional breaches of contract
- Professional negligence
E&O insurance helps small businesses protect themselves against financial loss and damage to their reputation. A policy will help you pay your legal defense costs resulting from a covered claim or lawsuit. This typically includes costs such as:
- Hiring an attorney
- Documentation charges and court fees
- Judgements you are ordered to pay
Without E&O insurance, these costs would be solely your responsibility, and paying them could quickly drain your bank accounts. In some cases, liability lawsuits force small businesses to close their doors permanently. Errors and Omissions insurance for Rhode Island businesses could help stop this from happening to you.
Who needs E&O insurance in Rhode Island?
Many types of businesses consider Errors and Omissions insurance in Rhode Island. The coverage a policy provides might benefit you if you regularly:
- Give clients advice or recommendations based on your professional knowledge and experience
- Design custom solutions for clients
- Represent a client’s interests on their behalf
- Employ others who do any of the above
Occupations that typically consider E&O insurance include:
- Real Estate Agent
- Notary Public
- Accountant or Bookkeeper
- Home Health Aide
If you’re a professional service provider in Rhode Island, compare multiple quotes for E&O insurance online now.
Is Errors and Omissions Insurance required In Rhode Island?
E&O insurance is required by law in Rhode Island for certain professionals. For example, real estate Errors and Omissions insurance is mandatory to receive a real estate license and work in the state.*
The Department of Business Regulation has full details on insurance requirements for professional service providers working in the Ocean State.
How much does Errors and Omissions Insurance cost in Rhode Island?
The amount you will pay for an E&O insurance policy depends on several factors, including:
- Your occupation or industry
- Annual revenue
- The amount of coverage you choose
- How many employees will be covered by your policy
- Your employees’ experience and licensing
- Past claims history
Your E&O premiums may vary from other small businesses (even those in your industry) depending on the factors listed above and others. You may be able to find the best coverage for your business at a price that fits your budget by comparing multiple quotes with BizInsure.
The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
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