In Florida, $36,870,506,000 in commercial claims were paid in 2019. The proper protection is necessary to avoid financial ruin. Errors and omissions insurance may be essential to your operation.
An independent insurance agent will help find a policy that fits your budget. Since they work with several carriers, you'll have options. Connect with a local expert to get started.
What Is Errors and Omissions Insurance?
In Florida, your business may need errors and omissions (E&O) insurance, also known as professional liability. It will protect your business from a claim against the professional services your company offers.
E&O insurance will help protect your business against the following:
- Errors in services provided
- Inaccurate advice
- Violation of good faith and fair dealing
What Does Errors and Omissions Insurance Cover?
In Florida, your E&O insurance will protect your professional services. Similar to malpractice coverage for a doctor or healthcare worker, E&O coverage is for businesses.
If your business is sued due to professional services rendered, E&O insurance can help cover your:
- Administrative fees
- Settlements or judgments
- Attorney fees
- Court fees
How Much Is Errors and Omissions Insurance?
Your business insurance premiums will be different from anyone else's. Insurance companies will use your personal data and outside factors to determine your costs. Check out what the carriers use to rate your Florida E&O policy:
- Number of claims in the area
- Your prior claims reported
- The industry you are in
- Your financial statements
- Your insurance score
- Your experience level
- How your business operates
- Safety measures taken
There is no way of knowing your specific pricing without quotes. Your E&O costs could vary depending on the size of your company and the above risk factors. Get a local adviser to run your premiums for exact figures.
Who Needs Errors and Omissions Insurance?
If your company offers professional services in any form or fashion, E&O insurance could be needed. In Florida, there are 2,500,000 small business owners, and many of them need E&O insurance to avoid significant financial risk. Take a look at the following industries that this may include:
- Advertising agencies
- Lawyers and law firms
- Marketing agencies
- Website developers
- Hair salons and spas
- Veterinary offices
- Financial services
- Real estate agents and brokers
- Insurance agents and agencies
Sometimes E&O insurance is required by companies that you do business with. If you have a contract with another entity, they may ask to be listed on your business policies in order to work with them. This is to protect their interests and ensure that you don't file a claim on their policies.
Does Umbrella Insurance Cover Errors and Omissions?
In Florida, commercial umbrella insurance will cover numerous items. It works in conjunction with your other business insurance policies when a large claim occurs. Check out how coverage can apply:
- Commercial umbrella insurance: This provides an additional liability limit for your underlying business insurance policies. It will pay for bodily injury, property damage, and slander losses that exceed your general liability, business property, and commercial auto policies.
Any professional liability policy such as E&O will not be under your commercial umbrella insurance. That is because umbrella insurance will not kick in for losses that would fall under E&O coverage. Instead, it is used for more physical claims like an injury or your equipment damaging someone else's property.
How to Get Errors and Omissions Insurance
E&O insurance can be obtained in numerous ways. Florida has many professionals that are licensed and able to provide quotes. When you're searching for the perfect policy at a fair price, consider using a trusted adviser.
An independent insurance agent has access to multiple markets, giving you options. Since they work on your behalf, you'll save time and premium dollars. Connect with a local expert on TrustedChoice in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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