2014

Professional Liability Insurance (Errors and Omissions Insurance) for Lawyers, Travel Agents, Authors, Employment Agencies, and Other Specialty Service Providers

Professional Liability Insurance (also known as Errors and Omissions Insurance or E&O Insurance) protects your law firm, travel agency, medical billing company, or other specialty services business when a client claims you haven't fulfilled your obligation because your business…

  • Made an error or oversight.
  • Was negligent.
  • Provided incomplete or insufficient work.

Regardless of whether your client's claims are valid, E&O Insurance can protect you from a burdensome lawsuit.

Differences Between E&O and General Liability Insurance for Lawyers, Employment Agencies, Authors, Dog Groomers, and Other Specialty Businesses

Many customers wonder why they need more than one type of liability insurance—shouldn't one business insurance policy cover all their bases? But E&O and General Liability Insurance are designed to cover different aspects of your business.

E&O Insurance covers your professional relationships with customers and the liabilities you face as a result of the work that you perform for others.

General Liability Insurance covers your business when a third party (such as a customer) is injured or harmed by your company, employees, or property. When a customer trips and falls, that's General Liability Insurance. When a customer feels you haven't performed the work that you promised you would do, that's E&O Insurance.

E&O Insurance for Specialty Service Professionals: Medical Billing Companies, Notaries Public, Executive Coaches, and Other Specialty Services Industries

Specialty service industries like yours are especially susceptible to Errors & Omissions claims. A lawyer can be sued for mishandling a case and costing his client thousands of dollars. Travel Agents who incorrectly schedule one leg of a trip can cost their clients a good deal of headache. Truckers and delivery personnel transport thousands of dollars worth of someone else's cargo. In each of these industries, one simple mistake can cost your customers.

Errors and Omissions Insurance can prevent one simple error from ballooning into the unmanageable costs of an expensive lawsuit.

Protection from Expensive Lawsuits for Lawyers, Truckers, Translators, Pet Groomers, Employment Agencies, and Other Specialty Service Industries

As much as you would like it to be so, your business can't be perfect. You're going to make mistakes. Errors & Omissions Insurance can help you with some of the most costly mistakes.

Let's say a law firm makes a mistake on an employment contract a client has asked the firm to prepare. A year later, the client wants to fire the party they hired, but a simple mistake in the contract makes it so the former employee can be entitled to the remainder of their salary. The client is furious that the firm could make this mistake. Likely it was a miscommunication. Maybe even an error on the client's part.

But whatever the case, E&O Insurance can help pay for the legal fees, settlement, and other court costs that come from a lawsuit.

What Claims-Made Coverage Means for Your Medical Billing, Translation, Legal, or Notary Public Business

It is important to understand how E&O Insurance works and what it means to be a "claims-made" coverage. E&O insurance only covers your business for incidents that happen while you are covered. If you are sued for an incident that occurred before your coverage started, you won't be covered even if the lawsuit itself takes place while you are paying your premiums. That's how claims-made coverage works.

In addition, this also means that if you switch policies, you will no longer be covered for what happened under your old policy.

Here's an example. A medical billing company uses the wrong rate for a procedure. The customer pays and doesn't realize they've overpaid. The billing company switches to a different insurance carrier, and months later the customer realizes the mistake. If they file a lawsuit, the billing company's current coverage will not pay for the cost of the lawsuit. The incident itself happened before that coverage started. The old coverage won't cover it either, because those premiums are no longer being paid.

For this reason, most businesses find one Errors and Omissions Insurance policy and stick with it for the business's lifespan. This is the best way to ensure there are no gaps in your coverage.

Errors and Omission Insurance Tailored to Lawyers, Employment Agencies, Travel Agents, Truckers, and Other Specialty Services

Professional Liability Insurance is supposed to protect your business from the mistakes that you could make. You'll want a policy that is designed especially for your business—one that takes into consideration the kinds of liabilities you may face.

Whether you're a sole-proprietor, a trucking company, pet groomer, or employment agency, the liabilities you face are particular to the work that you do.

At insureon, we tailor E & O and other insurance policies to your actual business. We train agents to already know the subtleties of your industry before you contact us. That means when you fill out our online insurance application, the agent who responds will have experience insuring businesses like yours.

For a custom-tailored insurance plan for our small business, contact one of our experts.

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