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The Basics of Errors and Omissions Insurance

The Basics of Errors and Omissions Insurance

Errors and omissions insurance is a protection that many companies should never be without. The name may change depending on the industry in which a person works but its purpose is the same. Errors and omissions insurance in Virginia offers protection for the insured if and when a client holds them responsible for services they provided that did not have the expected outcome. It also covers companies and individuals for services that they should have provided, but did not.

 

What Is Usually Included In a Policy?

 

Most policies cover the following:

 

  • Judgments
  • Settlements
  • Defense Costs

 

Even if a claim is baseless, defendants often have to pay thousands in attorney’s fees to defend the lawsuit before the claim is settled or dropped. This can have a large impact on a company, no matter how large or well-established.

 

Who Should Get Coverage?

 

Some workers are required to have E&O insurance by law. Others can choose to purchase the coverage to ensure that they will not be blindsided by a claim. The most common professionals to have Errors and omissions insurance in Virginia include the following:

 

  • Doctors
  • Lawyers
  • Accountants
  • Engineers
  • Architects

 

To determine whether you would benefit from coverage, companies and individuals should consider how they would handle a situation in which their service is incomplete or incorrect, leading to lost money or a harmed reputation for a client. Essentially, a good rule of thumb is that anyone who has provided a client a service in return for a fee would benefit from the coverage offered by E&O insurance.

 

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