Commercial insurance agents can attract a large variety of clients. However, you need to make sure you offer the right types of policies to satisfy their insurance needs. Among your policy offerings, you can usually include errors & omissions insurance, sometimes called E&O insurance or professional liability coverage. Which of your clients need this coverage?
Understanding E&O Policies
Liability insurance applies to the harm a business owner might cause to clients or other parties through their operations and practices. Policyholders can use it to compensate the harmed parties for their losses. It can also help the policyholder pay for their own defense in case of lawsuits. Businesses usually carry several types of liability insurance because policies apply to different losses.
An E&O insurance policy, specifically, will apply to a business’s professional mistakes that cause others personal or financial harm. In other words, if a business’s services cause someone else harm, then coverage will help them pay for the recovery.
E&O Policies for All Businesses
Many people mistakenly think that E&O insurance is necessary only for those who provide professional services, like doctors, lawyers or accountants. It is your job to dispel this myth. Almost any business owner can benefit from an E&O policy.
Say, for example, that one of your customers is an architect. They send a design to a client, who then sues them because the design leads to multiple problems with the structure, cost and code violations. Because the architect’s mistakes led to the client’s problems, the client might expect the architect to pay. It is the architect’s E&O insurance that might pay for the repairs.
Many businesses benefit from a miscellaneous E&O insurance policy. These don’t apply to a specific industry. However, the business owner often still can tailor the policy to include limits and special coverage elements for their own needs.
At times, a miscellaneous E&O policy might not provide all the assistance certain businesses or industries need. As a result, you might need to offer a selection of targeted policies.
A prime example of such a need is if you serve the medical community. E&O policies for doctors and other medical staff are more commonly called medical malpractice insurance. Malpractice policies, offer very specific coverage given the variety of regulations surrounding health care.
If you need assistance determining the right E&O portfolio for your operation, talk to one of our brokers today at (800) 460-6424. We can help any client-focused agency obtain the appropriate packages that will help their operation grow and succeed.
Also Read: Make Sure E & O Coverage Insures Libel and Slander