Massachusetts Errors and Omissions Insurance

Everybody makes mistakes. No matter how diligent they may be while doing their jobs, professionals in a wide range of industries face the risk that they may one day be sued for negligence by an unhappy client. That is why errors and omissions insurance is so important.

If you are looking for an errors and omissions insurance policy, or if you just want to learn more about this important coverage, an independent insurance agent can help. These experienced agents can answer your insurance-related questions and can shop around to find you the best and most affordable policies.

There are nearly 1,300 independent agents with offices in Massachusetts. Find an insurance agent near you to get started.

What Is Errors & Omissions Insurance?

Errors and omissions insurance is a type of professional liability insurance. It is designed to protect companies and individuals in professional positions by providing liability protection for lawsuits regarding negligence, errors, or inadequacies in the rendering of their professional services.

Who in Massachusetts Needs Errors & Omissions Insurance?

If you are a professional in a private practice or if you own a business that provides professional services, you may want to strongly consider purchasing an errors & omissions insurance policy.

Although this coverage is not required by law, it is sometimes required by professional licensing boards.

Insurance companies offer E&O policies designed specifically for a number of different professional occupations. Examples include the following.

• Lawyers and legal consultants
• Insurance agents and actuaries
• Accountants, CPAs, bookkeepers, and tax preparers
• Real estate agents and brokers
• Architects and engineers
• Wedding planners
• Career consultants
• Funeral directors
• Interior designers

This is far from a complete list. There are more than 100 different kinds of professions that can benefit from the coverage offered by errors and omissions insurance.

How Much Does Errors & Omissions Insurance Cost in Massachusetts?

The cost for errors and omissions insurance can vary significantly from one policy to the next, primarily because some professions a have higher risk of facing an expensive lawsuit than others. Some of the factors that can influence rates include the following.

• Whether you are buying a policy for yourself or for your business
• The type of profession(s) being insured and the number of people you need to cover
• How much coverage you are purchasing
• The size of your deductible
• Your claims history

Generally speaking, a typical $1 million E&O policy costs between $500 and $1,000 per person per year, but it is not unusual for policies to fall outside this range.

To find out how much a policy will cost you, you can consult a local independent insurance agent. Your agent can gather a selection of customized quotes on your behalf.

Errors And Omissions (E&O) Insurance

Request a quote

What Does Errors & Omissions Insurance Cover?

There are a number of reasons why a client may open a lawsuit against you or your company. For instance, this might happen if your clients feel that the services received were inadequate, that you acted negligently, or that you made another professional mistake, and this resulted in them experiencing injuries, financial losses, or other damage.

Here are examples of things that an errors and omissions policy can cover against.

• Negligence and oversight
• Missed deadlines
• Undelivered services
• Poor or inaccurate advice
• Violations of good faith and fair dealing

Errors and omissions insurance can shield you and your business from financial losses stemming from these accusations. Your policy is designed to cover these costs.

• Legal fees
• Court costs
• Arbitration costs
• Administrative fees
• Settlements or judgments

Talk to a local insurance agent to learn the specifics of what a policy designed for individuals in your profession will cover.

What Does Errors & Omissions Insurance Not Cover?

As with any insurance policy, there are exclusions to what errors and omissions will cover against. For instance, many E&O policies will not cover claims involving the following.

• Incidents that occurred prior to the purchase of your policy, even if the claim was filed during your active policy period
• Illegal acts, criminal acts, and intentional wrongdoings
• Bodily injury and property damage
• Cost estimates, warranties, or guarantees
• Infringement of copyrights, trademarks, patents, or trade secrets
• False advertising and deceptive pricing

Talk to a local independent agent for more information about what your errors and omissions insurance policy will and will not cover.

Does Umbrella Insurance Cover Errors & Omissions?

Unfortunately, errors & omissions insurance cannot be boosted by umbrella insurance.

If you want to have higher coverage limits than your E&O policy can provide, you can talk to a local independent insurance agent about purchasing an excess errors and omissions insurance policy or rider. This coverage acts in the same way as a traditional umbrella insurance policy in that it kicks in when your primary policy’s coverage is exhausted.

Local independent insurance agents can help you be certain that you have all the liability protection your need as a professional in Massachusetts.

How to Get the Best Errors & Omissions Insurance in Massachusetts

The easiest way to find the right errors and omissions policy is by working with a local independent insurance agent. These agents work for you, not for a particular insurance company, so they are free to shop around to find suitable coverage at an affordable price.

Set up an obligation-free consultation with an independent insurance agent near you to start comparing customized errors and omissions insurance quotes.