Insurance Errors & Omissions: The 6,250% Increase You Can't Ignore

Insurance Errors & Omissions (E&O)

Errors and omissions (E&O) insurance is a type of liability insurance that protects professionals from claims of negligence, errors, or omissions in the performance of their professional services. This type of insurance is essential for businesses of all sizes, as even a single lawsuit can be financially devastating.

According to the Insurance Information Institute, the average cost of an E&O claim is $75,000. However, the cost of a claim can vary significantly depending on the severity of the error or omission. In some cases, the cost of a claim can reach into the millions of dollars.

Common Mistakes to Avoid

There are a number of common mistakes that businesses make when it comes to E&O insurance. These mistakes can lead to coverage gaps, which can leave businesses exposed to financial risk. Some of the most common mistakes include:

• Failing to purchase enough coverage. Businesses should purchase enough E&O coverage to protect themselves from the full cost of a potential claim.
• Not understanding the policy. Businesses should carefully review their E&O policy to make sure they understand the coverage terms and conditions.
• Failing to report claims promptly. Businesses should report claims to their insurance company as soon as possible. Failure to report a claim promptly can jeopardize coverage.

Why E&O Insurance Matters

E&O insurance is essential for businesses because it can:

• Protect businesses from financial ruin. A single lawsuit can be financially devastating for a business. E&O insurance can help businesses to cover the costs of a lawsuit, including legal fees, damages, and settlements.
• Maintain customer confidence. A lawsuit can damage a business's reputation and lead to a loss of customers. E&O insurance can help businesses to maintain customer confidence by demonstrating that they are committed to providing quality services.
• Attract new customers. Businesses that carry E&O insurance are often more attractive to new customers because they are seen as being more credible and trustworthy.

Benefits of E&O Insurance

There are a number of benefits to carrying E&O insurance. These benefits include:

• Peace of mind. E&O insurance can give businesses peace of mind knowing that they are protected from the financial consequences of a lawsuit.
• Reduced financial risk. E&O insurance can help businesses to reduce their financial risk by covering the costs of a lawsuit.
• Increased customer confidence. E&O insurance can help businesses to increase customer confidence by demonstrating that they are committed to providing quality services.
• Attracting new customers. Businesses that carry E&O insurance are often more attractive to new customers because they are seen as being more credible and trustworthy.

How to Get E&O Insurance

Businesses can purchase E&O insurance from a variety of insurance companies. When shopping for E&O insurance, businesses should compare quotes from multiple insurance companies to find the best coverage at the best price.

Conclusion

E&O insurance is an essential type of insurance for businesses of all sizes. This type of insurance can protect businesses from the financial consequences of a lawsuit, maintain customer confidence, and attract new customers. Businesses that do not carry E&O insurance are putting themselves at unnecessary financial risk.

Table 1: The Cost of E&O Claims

Table 2: The Benefits of E&O Insurance

Table 3: Common Mistakes to Avoid When Purchasing E&O Insurance

Table 4: How to Get E&O Insurance