In Kentucky, there are 351,260 small business owners. If you're one of them, you may need errors and omissions insurance. It will depend on what industry you are in and how you operate.
Fortunately, an independent insurance agent can help with carrier options. They have multiple coverages and premiums available through their network. Connect with a local expert for customized quotes.
What Is Errors and Omissions Insurance?
Errors and omissions insurance is also known as E&O insurance. It is a type of professional liability insurance for companies. It will protect your business, employees, and other professionals against claims of inadequate work and negligence.
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?
E&O insurance in Kentucky will provide a level of protection similar to medical malpractice insurance for physicians. It is professional liability for the business world.
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?
Like your other Kentucky business policies, your E&O insurance costs can vary. There is no one-size-fits-all premium when it comes to your business insurance. Numerous factors play a role in your pricing. Check out what the carriers use to rate your 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
While you won't know your exact costs, the factors that companies use are good to know. There are many ways to obtain E&O insurance for your business. To know your specific pricing, get quotes from a professional.
Who Needs Errors and Omissions Insurance?
In Kentucky, $4,661,744,000 in commercial insurance claims were paid in 2019 alone. The people that need E&O coverage will be the ones that offer professional services. Take a look at the following industries that this may include:
- Advertising agencies
- Marketing agencies
- Website developers
- Hair salons and spas
- Veterinary offices
- Financial services
- Real estate agents and brokers
- Insurance agents and agencies
Does Umbrella Insurance Cover Errors and Omissions?
Your Kentucky business insurance is multi-faceted. There are several policies you can obtain depending on your industry. One of them is commercial umbrella insurance.
- 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.
Your professional liability policy, including E&O and malpractice, will not be under commercial umbrella insurance. A business umbrella policy covers more tangible items explained in the definition above. In this case, it is necessary to have adequate limits of protection for your E&O insurance.
How to Get Errors and Omissions Insurance
When you are searching for the best E&O insurance in Kentucky, a trusted adviser can help. Instead of going it alone, consider using a licensed professional. They know the lay of the land and can navigate the carrier offerings for your business.
An independent insurance agent works with several markets, so you have options. They can obtain coverage and premiums that are sufficient and affordable. Connect with a local expert on TrustedChoice to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
©2021, Consumer Agent Portal, LLC. All rights reserved.