Errors and Omissions (E&O) Insurance (also known as Professional Liability Insurance),  covers you in the event you or your business is sued because of a professional mistake or oversight, or due to client dissatisfaction.

Often, businesses will spend thousands of dollars to defend a lawsuit—even those that are without merit. These costs may result in bankruptcy for smaller companies and individuals, and can have an effect on a larger company’s overall earnings. With an E&O policy, you and your company will be protected against a client’s claims.

If you are in the business of providing a service or services to clients, then E&O Insurance is something to consider. Lawyers, doctors, architects, engineers and accountants more typically require this kind of insurance, but real estate agents, web developers, IT professionals, wedding and event planners, consultants, and freight shippers will also benefit from having an E&O policy.

When a client claims a service you provided (or failed to provide), caused them financial damage, a project delay or an event cancellation, you will be expected to cover the losses they say were incurred. An E&O policy will protect you and your business against any such settlements and judgements, and will also cover attorney fees and court fees. 

 At Colstan & Associates, we can help you find an E&O Insurance policy that will provide the solutions, funds and resources you need, to keep your business functioning and your reputation intact. Remember, even if you are found not to be at fault, fighting these false claims takes both time and money.

How Risk Factors Determine Rates

The cost of an Errors and Emissions policy is dependent upon the type of business you have. Typically, the riskier your business, the higher your insurance premiums will be. To determine how much an E&O policy will cost you, it’s best to meet with an Colstan & Associates agent to discuss the following: 

• How large is your company? The number of employees and the amount of revenue are significant
• Which industry? The type of industry you run is important to the coverage you will need
• Where is your business located? Geographic location is directly related to the costs of premiums
• How clear is your contract? Contracts are essential to businesses
• Are your employees well-trained?  Compliant and driven employees are indispensable
• Legal actions history? A clear, honest summary of case histories is necessary
• Do you value quality control? Meeting clear expectations and providing quality services and products

Tail Coverage (also known as Extended Reporting Coverage), allows the the insured a time period where they retain coverage for any E&O claims, that are a result of professional services provided after the retroactive date in the policy and prior to the expiration date. If an agency owner does not have Tail Coverage, he or she is responsible for any defense costs and damages for professional liability claims that are made after the policy has expired or is cancelled.

For more information on Tail Coverage Insurance, contact Colstan and Associates @ 631-266-2800.