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Errors and Omissions Coverage – Protecting Against Mistakes
By OnTopic | December 18, 2009
Business professionals, such as realtors, require errors & omissions insurance protection to save them from paying full lawyer fees if a lawsuit comes up due to an error or omission in his or her services he or she provided. The coverage is separate from general liability or property coverage.
Errors and omissions insurance can also be referred to as E&O, or malpractice insurance. This type of coverage is customized for professionals like architects, accountants, realtors, physicians, and various other medical professionals. E and O protection ought to be purchased at the beginning of a business and included in the initial policy.
There isn’t a standard for E&O coverage. Each situation will be different and may require varied coverage needs. The insurance carrier’s broker can evaluate the company and what work is handled on the site and provide a contract that will protect your company’s requirements. These insurance contracts are written based on a claims brought up and reported premise, meaning that any cases must be made and reported within the time of the policy. Cases that may arise outside of the contract date won’t be taken care of. When submitting an application for the coverage, an broker may decide to view the business’s quality assurance procedures, records as well as your training programs and if your company has had any previous lawsuits.
The cost of professional liability policies is different from business to business. Errors and omissions insurance will cover your business from rulings, settlements, as well as defense costs and can probably spare your company thousands of dollars, even if your case is deemed baseless.
When errors and omissions insurance has been issued, the business needs to keep operating at a reputable level. Possessing this insurance doesn’t imply that the business should begin running your business in a manner which might perhaps result in a breach of contract suit. This insurance is intended to protect from any unforeseen event or error which may arise.
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