Errors and omissions insurance can give entrepreneurs in and near Zeeland, MI, a lifeline when they face unexpected claims arising from their services. Also called professional liability or errors and omissions (E&O) policies, these policies protect businesses and individuals against claims from clients arising from alleged or actual mistakes, negligence, or failure to provide promised services. Ottawa Insurance Agency can help you find appropriate commercial insurance policies to protect your business against various risks.
How Errors and Omissions Policies Work
You and your employees may not intentionally make mistakes, but that often makes no difference to clients, especially when actions affect their finances. E&O gives you an essential safety net by covering the costs associated with client lawsuits, regardless of whether the claims are justified. Without this protection, you could easily lose your business. Your policy covers legal defense costs, and payments for settlements and judgments if a court rules against you. This insurance covers you for:
- Misrepresentation or inaccurate advice
- Missed deadlines
- Failure to deliver promised services
- Negligence or breach of standard of care
E&O policy exclusions:
- Bodily injury
- Property damage
- Criminal acts
- Employee injuries
- Discrimination
- Wrongful termination claims
Who Benefits from E&O Insurance?
Consider obtaining an errors and omissions policy if you provide professional services or advice to clients for a fee. Some industries or licensing boards may require you to buy this type of commercial insurance policy. Professionals who typically benefit from E&O are:
- Accountants
- Consultants
- Architects and engineers
- Insurance agents
- Financial advisors
- Real estate agents
- Lawyers
- Software developers
With an errors and omissions policy in place, entrepreneurs can better manage their risk and protect their business from potentially devastating financial losses.
Learn more about what an errors and omissions policy and other types of commercial insurance can do for your company. Contact the professionals at Ottawa Insurance Agency, serving the Zeeland, MI area, for an appointment.
