Errors and Omissions Insurance
If you offer professional services under contract to your clients, you are vulnerable to lawsuits when errors are made. At P.D. Foster Insurance we offer Errors and Omissions Insurance coverage to protect you from liability if your errors lead to losses or damages for your customers. Even if a customer accuses you of mistakes without justification, your Errors and Omissions Insurance helps cover associated legal and administrative fees so you can defend yourself and protect your reputation.
What is Errors and Omissions Insurance?
Errors and Omissions Insurance, also known as E&O insurance, protects you from losses suffered due to a fault or mistake made when providing your services. It is a supplement to liability insurance which does not cover losses due to lawsuits of this nature and the legal expenses required to defend your case. P.D. Foster Insurance always advises our professional clients to include both E&O and liability insurance in their business insurance policies.
Who needs Errors and Omissions Insurance?
Typically, professionals offering any form of service need Errors and Omissions Insurance, including, but not limited to:
- Accounting firms
- Graphic designers
- Advertising agencies
- Marketing consultants
- Professional writers
- Web designers
- Home inspectors
If you are expected to provide advice, information, or facts and data in your work where errors or omissions could result in issues for your clients, E&O insurance is highly recommended
Why You Need Errors and Omissions Insurance
Professionals can be sued by unhappy clients who either feel you failed to deliver the services they paid for, or you make a mistake that leads to issues for them. This can be related to a wide number of issues from using the wrong term for a medical pamphlet to incorrect taxes that lead to fines. The financial losses in these cases can be devastating, which is why you need E&O insurance to cover the costs. Even when wrongfully accused, your coverage pays for your legal fees due to a lawsuit.
What coverage does Errors and Omissions Insurance provide?
Your E&O coverage includes:
- Negligent acts, errors or omissions related to your services
- Failure to deliver a service as promised
- Defamation cases against your client due to your services
- Libel or slander against your client due to your services or your actions
It is also important to understand E&O Insurance does not cover the following:
- Criminal, dishonest, or fraudulent acts
- Violations such as against the securities acts if you are a stockbroker
- Cost guarantees or price estimates you fail to honour
- Incorrect estimates of profits or economic returns for financial advisors or stockbrokers
We can discuss your specific profession and the services you offer to determine the best coverage for your needs.
Why Choose P.D. Foster Insurance
At P.D. Foster Insurance we have been offering specialized insurance services to our customers since 1949. We understand the challenges of running a business and the importance of professionalism and accuracy for every policy we create.
As a result, we provide comprehensive E&O policies that protect you when errors occur. Despite every precaution you take to provide thorough, detail-oriented services, mistakes can happen that lead to costly lawsuits. Your coverage protects you against losses related to settlements as well as administrative and legal fees, so you don’t lose your livelihood.
For more information about Errors and Omissions Insurance, speak to our team today.