What is E&O Insurance?
E&O insurance (a.k.a. Professional Liability insurance) provides protection in the event of a claim where your business, or your employees, make a negligent error or omission, and by doing so, have caused a financial loss for your client. Generally speaking, E&O is a form of insurance that protects you, and/or your company, from bearing the full cost of litigation associated with a negligence claim.Coverage includes:
- Legal defense costs and expenses including attorney fees
- Settlement costs and expenses
- Judgment costs and expenses
Who needs E&O Insurance?
Individuals and businesses that provide professional services such as giving advice, making educated recommendations, designing solutions or representing the needs of others all have E&O exposure. Choosing your clients wisely, managing their expectations and the use of service contracts between you and your clients can help to limit your exposure to claims arising out of the services you provide to clients.
However, without E&O Insurance the cost of a legal defense to determine your true financial liability, or prove your innocence, can be devastating. Coverage can safeguard your professional reputation, profitability, and business assets from the potentially astronomical expenses of litigation.
How much does E&O Insurance cost?
Premiums from here are as low as $27/month or $310/year, depending on your potential exposures and the amount of coverage you intend to purchase. Some of the factors that impact the cost or premium, for an E&O policy include:- industry
- revenue size
- length of time in business
- claims history
- geographic location
- risk management procedures
- the amount of coverage desired
- the size of your deductible