Own an exisiting business and interested in creating additional revenue?CLICK HERE →

News & Blog

Do I Need Errors and Omissions E&O Insurance Coverage

News & Blog

Whenever you operate a business and provide a service for money, you have a risk of being sued. Court costs alone can run into the thousands to tens of thousands of dollars. Businesses are sued on a regular basis for a variety of reasons. Errors and Omissions (E & O) is one type of insurance coverage that may help you avoid expensive court cases.

What is E & O insurance?

Errors and Omissions insurance (E & O), also called Malpractice Insurance, is a type of Professional Liability Insurance (PLI) that protects companies, employees, or individuals against claims made by clients for inadequate work or negligence. It typically covers court costs and any settlements up to the amount specified by the insurance contract.

Who needs E & O insurance?

Any business that provides a service for a fee can be sued for negligence. Therefore, any business that provides a service may need E & O insurance. However, there are some types of businesses that are at higher risk than others. The more critical and / or expensive that service is, the higher the risk of being sued. Typical high-risk professionals that may want to consider E & O insurance include: advertising agencies, architects, commercial printers, doctors, engineers, lawyers, mortgage brokers, real estate agents, tax accountants, and web hosting companies.

How much is E & O insurance?

The cost of E & O insurance varies depending on many things, including: number of employees, type of industry, and insurance coverage limits. Typical E & O insurance costs are between $750 and $2500 per year. There are many variables involved which affect the cost. It is recommended to discuss this with an insurance agent or broker that provides E & O insurance. When working with 1040TaxBiz, we will recommend a company which offers Errors & Omissions insurance.

Leave a Reply

Your email address will not be published.