If you own a company that deals out advice, you may be at risk for a lawsuit. There are 532,277 small businesses in Missouri, and some of them are in the consulting industries. Errors and omissions insurance can help protect your livelihood.
Fortunately, an independent insurance agent will be able to find coverage for an affordable price. They work with A-rated carriers so that you get the best policy around. Connect with a local expert and start saving on insurance today.
What Is Errors and Omissions Insurance?
If you own an operation in Missouri, there are a lot of risks you need to consider. In the consulting business, you have to be careful about what advice you do or don't give. If you fail to provide accurate information, you could be exposed to a significant loss. Errors and omissions insurance, or E&O insurance, can help protect your business against the following:
- Errors in services given
- Inaccurate advice
- Violation of good faith and fair dealing
What Does Errors and Omissions Insurance Cover?
If your Missouri business has E&O insurance, you are already ahead of the game. This coverage is often overlooked and shouldn't be. The most common professions that fall under this policy include:
- Real estate agents
- Business brokers
- Insurance agents
- Financial advisers
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?
The price of any personal or commercial insurance policy will be unique to each individual or entity. Insurance companies look at your specific data and more to gauge a premium. Check out what the carriers use to determine your Missouri E&O policy premium:
- 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
The only way to obtain exact costs is by getting quotes. Another method for instant savings is bundling. When you bundle your commercial policies with the same carrier, they reward you with lower premiums. A typical savings of 30% or more can be expected.
Who Needs Errors and Omissions Insurance?
In Missouri, $7,615,718,000 in commercial insurance claims were paid out in 2019 alone. While not every single business will need E&O protection, a good portion will. The right protection could mean the difference between a claim being paid by you or the insurance company. Take a look at the following industries that this may include:
- Advertising agencies
- Lawyers and legal firms
- Marketing agencies
- Website developers
- Hair salons and spas
- Veterinary offices
- Financial services
- Real estate agents and brokers
- Insurance agents and agencies
Another need for adequate protection is certificates of insurance. If your business does work for any other person or entity, you could be required to prove coverage. E&O is one policy that your company will have to provide in order to get a contract.
Does Umbrella Insurance Cover Errors and Omissions?
In Missouri, a loss in the millions is not uncommon these days. If you're a business owner, you're even more at risk for a claim. Fortunately, a business umbrella policy can fill the gap. Check out how coverage can help:
- 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.
While a commercial umbrella policy will add protection in the event your underlying policy limits are exhausted, it won't apply to an E&O claim. For that, you'll need to have adequate coverage on your primary E&O policy. Review your limits with a trained professional to make sure you've got the best plan for your operation.
How to Get Errors and Omissions Insurance
The proper protection can make or break your Missouri business. It only takes one claim, and you could be closed for good. Errors and omissions insurance will help if you guarantee a professional service, consult, or advise clients.
An independent insurance agent will have access to numerous markets so that you get the best options on coverage in town. They do the shopping for free, making your policies affordable. Connect with a local expert on TrustedChoice for custom quotes today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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