What does errors and omissions insurance cover

What does errors and omissions insurance cover
What does errors and omissions insurance cover

What does errors and omissions insurance cover | Errors and omissions insurance helps protect your business from claims of:

  • Negligence
  • Errors in services given
  • Omissions
  • Misrepresentation
  • Violation of good faith and fair dealing
  • Inaccurate advice

If someone sues your business for making a mistake in the professional services you’ve provided, this insurance can help cover your:

  • Attorney fees, which can cost an average of $3,000 to $150,000.
  • Court costs, like reserving a courtroom or paying for expert witnesses.
  • Administrative costs to put your defense together, such as paying office managers or court reporters.
  • Settlements and judgments, which can cost a couple thousand to millions of dollars.

Errors and omissions insurance only helps cover claims if:

  • It’s filed within your policy period or the extended reporting period
  • The incident occurred on or after your retroactive date

The retroactive date means incidents that happen on or after a certain date in your policy are eligible for coverage. The extended reporting period helps cover claims filed within a certain period of time after your policy expires.

What does errors and omissions insurance cover