In the event of negligence, lack of delivery on business agreements, or workplace errors/mistakes professional liability insurance will provide financial protection and support for you and your business whether the accusation is justified or not.
If you’re a small business, professional liability insurance can aid in avoiding out-of-pocket expenses.
The most common businesses that have E&O insurance policies are businesses that provide services and professional advice. For example:
- Real Estate
- Property Managers
Based on your profession or business services you might be required to have professional liability (E&O) insurance for licenses or contracts. You may interact with a client that requires proof of E&O before they agree to work with you.
Professional liability (E&O) insurance is important because it protects you from risks associated with errors when making business decisions, most importantly with clients and business partners.
You can be financially protected from costs with E&O such as:
- A client or business partner accuses you of making a mistake that resulted in financial distress.
- Financial harm happens to your client or business partner due to you missing a work deadline.
- You’re accused of being negligent in providing services your business offers causing financial loss to your client or business partner.
Believe it or not, professional liability (E&O) insurance can boost your client intake by letting prospects know that protection is offered in the event of a business mistake. We like to think of it as insurance for disaster recovery, crisis management, or legal cost assistance.
Professional liability (E&O) insurance helps in financially covering legal fees if you or your business is accused of errors or lack of delivery on services that result in a client experiencing a financial loss.
Professional liability (E&O) insurance will start at $19 a month, but price may vary based on your business’s coverage needs, claim history, business operations, and risk level. The cost may specifically rely on the additional factors mentioned below:
- Risk Levels
- Claim History
- Limitations and Insurance Package
There are ways that you can bundle your E&O insurance cost into your existing or to another policy. This tactic usually aids in saving on E&O insurance costs between your monthly or annual payment options.
The only difference between the two insurances is the usage of the term meaning some industries refer to this insurance coverage as E&O and others refer to it as professional liability insurance.
The term E&O insurance is most frequently used in:
- Real Estate
The term professional liability insurance is most frequently used in:
- Other service businesses