How Errors and Omissions Insurance Protects Small Business in Texas

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How Errors and Omissions Insurance Protects Small Business in Texas

Every service-base small business owner in Texas understands how difficult it is to predict the future. While you strive to make good decision, and provide sound advice for clients, sometimes mistakes will be made, or information will be taken out of context by the client. If mistakes are made or injuries occur that results in financial loss, a client may take legal action by filing civil litigation.

Errors and Omissions insurance helps to provide financial backing to companies who face potential legal problems based on the information or services they provide their customers. Being protected by Errors and Omissions Insurance in Texas provides these business owners the peace of mind, knowing they are protected and will have the resources available to defend their honor, business, and good name – without skipping a beat of normal business activities.

In this article, we’ll take time to break down the facts about Errors and Omissions insurance. We’ll explain how this insurance policy works, what’s covered and not covered, along with providing a few examples on how it can help any sized business owner.

What is Errors and Omissions Insurance in Texas

The US Small Business Administration estimates that nearly 2.6 million small businesses are active in the State of Texas. This represents 99.8 percent of all licensed businesses that operate in the state. To say that small business has an impact on the state’s economic stability would be an understatement. Those businesses who offer professional advice or service to customers charge their clients a premium for their experience, education, and knowledge. While they are experts in their industry, sometimes the most experienced service business owner makes mistakes.

Errors and Omission Insurance is also referred to as Professional Liability Insurance. It’s a customized insurance policy that protects small businesses in Texas against a third-party lawsuit made by clients or customers due to professional errors or negligence.

For example, if you operate an architectural firm, and provide a client with plans that are faulty, lead to additional construction costs to fix mistakes, or cause physical injury – a client may file a civil lawsuit to recoup damages. If this all-too-common issue happens, Errors and Omissions Insurance will provide you with the financial support to retain legal professionals, cover court costs, and permit your business to defend itself without compromising your daily activities or serving other clients.

What does Errors and Omissions Insurance Cover for Texas Small Businesses?

There are several legal and financial areas of support that are provided to business owners who establish and Errors and Omissions insurance policy. If your business is licensed in Texas, the coverage will provide financial support for alleged or actual negligence. It also covers legal and defense expenses including the following:

  • Legal Costs: When a small business in Dallas, Houston, or other Texas city is accused of providing faulty data or professional misconduct, possible civil litigation may be filed by your customer. Errors and Omissions Insurance will permit you to hire the best legal team, so you can begin your defense without delay.
  • Settlements: Quite often, issues can be resolved by clarifying communication, or settling the disagreement out of court. Errors and Omissions Insurance can cover settlement costs up to a predetermined amount based on the level of coverage.
  • Court Expenses: While several civil claims are settled outside of court, there are times when the legal system will need to determine if the claim is valid. There are court fees and expenses that are usually deferred to the losing party of a civil lawsuit. If your business is on the wrong end of the judgement, you may have to pay these costs including underwriting, administration, and filing fees.
  • Judgement: If the court determines that your business is at fault, a financial judgement may be awarded to your client. This can range from thousand to millions of dollars. Errors and Omissions Insurance will provide financial support to cover some or all of the judgement expenses based on the limits of the policy.

What is Not Covered with Error and Omissions Insurance?

There are a few items that are not covered with Error and Omissions insurance such as:

  • Illegal acts completed by the business or individuals working for the entity
  • Intentional malpractice or fraudulent acts
  • Acts of dishonesty
  • Property damage

What Type of Texas Businesses Needs Errors and Omissions Insurance?

If you operate any business that offers advice, recommendations, or solutions to customers in Texas that are based on your expertise, you can benefit from Errors and Omissions Insurance. In many instances, the claim is not legally legitimate, however, damage can occur simply based on accusation. When you have Errors and Omissions insurance, your ability to defend yourself with legal council is enhanced.

There are several professions who can benefit from Errors and Omissions Insurance including:

Home Care Providers

When you operate a home-based or onsite healthcare service, mistakes outside of your control can happen quickly. It’s also common for a home healthcare business to have multiple employees or contractors that operate under the business umbrella. An Errors and Omissions Insurance policy can be customized to cover these individuals as well as the business entity itself.

Accountants

An Accountant specializes in providing expert financial advice to clients ranging from individuals to large corporations. If mistakes or errors are made that impact a client financial or tax liability, they can be held financially liable. Errors and Omissions Insurance gives accountant’s peace of mind, knowing they can continue with business while potential legal issues are resolved.

Consultants

The consultant is hired specifically for their expertise in a service or industry. While they are usually independent contractors, they are still subject to claims filed by a client.

How much does Errors and Omissions Insurance Cost in Texas?

Like any other insurance policy, the cost of coverage is dependent on multiple variables. Some of the most common items that can increase or reduce the cost of your policy include the amount of coverage requested, the size of your deductible, the type of business you operate, how many employees are covered, and the range of protection services. Other items such as previous insurance claim history, credit rating, and the preference of the insurance carrier can also impact how much you’ll pay for this insurance policy in Texas.

Obtaining Errors and Omissions Insurance in Texas is not only a smart financial investment, it offers small business owners the peace of mind. It permits your small business to continue with business as potential litigation is handled by experts. It is scalable, can be customized, and optimized for any business size and scope.

Sheree Williams
Sheree Williams
19:39 27 Jul 21
Eugene was Awesome!!!!
Lakesha G
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
Lane
18:22 22 Jun 21
Jugrid Ombisi
Jugrid Ombisi
16:26 15 Jun 21
Done in less than an hour!
William Opperman
William Opperman
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda Jones
Brenda Jones
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik Solberg
Arik Solberg
16:34 10 May 21
Adj Ako
Adj Ako
16:47 05 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba Perez
Elba Perez
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper Martinez
Casper Martinez
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic Films
Poetic Films
21:00 07 Apr 21
Sandra Darjean-Murphy
Sandra Darjean-Murphy
17:48 31 Mar 21
Jusephine Ghong
Jusephine Ghong
17:58 23 Mar 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin Behm
Franklin Behm
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V Lapierre
Cassiopée V Lapierre
23:13 09 Mar 21
S & S Professional care llc Home Health Agengy
S & S Professional care llc Home Health Agengy
04:15 24 Feb 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie Woodruff
Stephanie Woodruff
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined Perez
Esined Perez
23:32 17 Feb 21
DIVINE FIJIANS HOME CARE SERVICES
DIVINE FIJIANS HOME CARE SERVICES
22:49 05 Jan 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe Wajdula
Joe Wajdula
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
Lisa Word
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda hale
rhonda hale
23:26 12 Nov 20
Owner (LPN)
Owner (LPN)
23:19 06 Nov 20
Cincere Browdy
Cincere Browdy
15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
Aileen Day
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
Michele Harris
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope jones
hope jones
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela Curry
Pamela Curry
16:45 24 Aug 20
Cameron Peek
Cameron Peek
19:25 24 Jul 20
Great and fast service!!!! The representative was very professional!!!!
Tanya Sweet
Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy Smith
Jimmy Smith
19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
James Lang
18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda Gray
Rhonda Gray
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
Paul Rising
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
Kristene Smith
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
Fre Hall
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn Torres-Gale
Dawn Torres-Gale
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
Graham Blair
22:12 23 Jun 17