An angry bride might sue her wedding planner if her big day is ruined due to an oversight. A recent retiree may sue his financial advisor if bad advice caused him to lose his life savings. The fact is, South Carolina professionals in all kinds of positions are at risk for potential lawsuits if they make mistakes or errors.
That is why errors and omissions insurance can prove so beneficial.
If you are shopping for errors and omissions insurance, a local independent insurance agent can help. These agents can explain in detail how these policies work and can help you review policies and quotes from some of the best insurance companies in South Carolina. Find an insurance agent near you to learn more.
What Is Errors & Omissions Insurance?
Errors and omissions insurance is a type of professional liability insurance. It is designed to protect individuals and businesses against financial losses related to accusations of negligence, oversights, missed deadlines, and other professional errors.
Who in South Carolina Needs Errors & Omissions Insurance?
If you work in a professional position in which your clients may claim that you provided inadequate services, or in which negligence or other errors could result in your clients experiencing injuries, financial losses, or other damages, you may benefit from the protections of an errors and omissions insurance policy.
Though these policies are not required by law, they may be required by professional licensing boards.
Insurance companies have E&O policies designed to meet the specific coverage needs of people in several professions, including:
- Attorneys and legal consultants
- Insurance, financial, and investment advisors
- Accountants, CPAs, and bookkeepers
- Real estate professionals
- Architects and engineers
- Website designers
- Grant writers
- Travel agents
- Interior decorators
These are just a few of the hundreds of professions that can benefit from the protections of an errors and omissions insurance policy. A local independent agent can help you determine whether a policy is a good idea for you.
How Much Does Errors & Omissions Insurance Cost in South Carolina?
Errors and omissions insurance rates can vary significantly from one profession to the next. Cost may be influenced by factors such as:
- The number of employees you are covering
- The types of professions being insured
- How much coverage you are buying
- Your claims history
To get a general idea, the average cost of a $1 million E&O policy is 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 coverage will cost you, consult a local independent insurance agent. Your agent can provide you with customized quotes from a few competing providers.
What Does Errors & Omissions Insurance Cover?
If you are sued for a covered event, errors and omissions insurance is designed to cover costs, including attorney fees for your legal defense, court costs and administrative fees, and settlements or judgments.
Covered events can vary according to the type of profession you are in, but examples of what you can expect to be covered include claims of:
- Oversights and omissions
- Missed deadlines
- Errors in services provided
- Poor or inaccurate advice
- Undelivered services
- Violation of good faith and fair dealing
Talk to a local insurance agent to learn the specifics of what a policy for people in your profession will cover against.
What Doesn't Errors & Omissions Insurance Cover?
As with every insurance policy, there are things that errors and omissions will not cover. Most E&O policies won't cover claims involving:
- Incidents that occur outside of your policy’s coverage period
- Intentional criminal, illegal, or malicious acts
- Discrimination or harassment
- Acts that lead to pollution
- Acts that lead to the financial insolvency of your agency
- Employees not named as covered insureds on your policy
Talk to a local independent agent for more information about what the errors and omissions insurance policy you are thinking about purchasing will and won't cover.
Does Umbrella Insurance Cover Errors & Omissions?
Business umbrella insurance can boost several different types of commercial liability insurance, but it doesn't cover errors & omissions insurance.
If you want more E&O coverage than your policy can provide, you may be able to get this extra coverage through an excess errors and omissions insurance policy. This insurance acts in the same way as a traditional umbrella insurance policy in that it kicks in when your primary coverage is exhausted.
A local independent insurance agent can help you be certain that you have all the coverage you need as a professional in South Carolina.
How to Find the Best Errors & Omissions Insurance in South Carolina
If you are shopping for errors and omissions insurance, a local independent insurance agent can help. These experienced agents are free to work with several different insurance companies so they can present you with customized policies and quotes from a few competing providers.
There are more than 300 independent agents in South Carolina. Contact an insurance agent with an office near you to get more information.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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