New Jersey has about 884,049 small business owners. The type of operation you run could have many commercial insurance needs. Errors and omissions coverage is one of them.
Fortunately, an independent insurance agent can help with coverage and premium options. They work on your behalf at zero cost to your business. Connect with a local expert to get quotes today.
What Is Errors and Omissions Insurance?
Errors and omissions insurance, also known as E&O insurance, is there to protect the professional services that you have rendered. If you offer services that turn out to be negligent or faulty advice, your company could be liable. 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?
Similar to medical malpractice coverage for a physician, E&O insurance will apply to professional businesses. This insurance lasts for a typical policy term of one year. In some cases, coverage can be for a two-year period.
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 personal and business insurance policies are all rated off of items that are unique to you. This can be personal data and local outside elements. Check out what the carriers use to determine your New Jersey 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
While you won't know the exact cost of E&O insurance until you get quotes, you can understand how it's figured. Each carrier will put a spin on how they rate your policies depending on your industry, but the basics are still required. To get specific pricing, contact a local adviser for quotes.
Who Needs Errors and Omissions Insurance?
In New Jersey, $13,470,081,000 in commercial insurance claims were paid in 2019. In order to avoid financial disaster, appropriate business policies are necessary. Not every company will need E&O insurance, but some will. 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
If you do business with any other companies, they usually require proof of business insurance. This can range from general liability to E&O insurance and everything in between. They will often want to be listed as an additional insured on all your policies to protect their interests.
Does Umbrella Insurance Cover Errors and Omissions?
When a more substantial loss occurs, New Jersey business umbrella insurance can help. It will protect your company from a major disaster. Check out how this 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.
Unfortunately, your E&O insurance will not apply here. Umbrella coverage is specific to more physical losses such as injury or property damage. That means you'll want to have adequate limits of protection on your primary E&O policy from the get-go.
How to Get Errors and Omissions Insurance
Your New Jersey E&O insurance can be confusing if you're not a licensed professional. Instead of trying to do it on your own, consider using a trained adviser. When a claim occurs, the right coverage is necessary to avoid financial ruin.
An independent insurance agent can help. They have access to several markets, giving you the best options on policy and premiums. Connect with a local expert on TrustedChoice to begin.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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