E & O - Worth The Money?

E&O and other similar professional liability insurance policies can be crucial for professionals whether they are low profile licensees or high profile professionals. Gone are the days when only doctors and other highly visible professionals needed to cover their rears with malpractice insurance and other related policies.

Today architects, real estate agents, physicians assistants and directors of corporations are being taken to court for their negligence, errors or omissions. Not having an insurance policy that can protect you against legal action can mean that your career is over and that your house is sold to pay damages.

Being negligent can start with something tiny that balloons into something catastrophic. You could inadvertently throw away a page from a client's file or shred a vital document. This could cause you to give a client bad advice or miss a deadline.

Nobody can make the correct choice every single time. Having an insurance policy that covers you for the human error that we are all subject to can save your financial life.

What is E&O? It is similar to a physician's malpractice insurance. It protects you the professional when a client sues you due to their belief that you have made a professional mistake that hurt them.

It important to know that professional liability is not included in a general liability insurance policy. So even if you have covered yourself with a general liability policy, you still have exposure to the risks that are part and parcel to your profession.

What is not covered by errors and omissions? These policies are not designed to cover you for criminal acts. They will not cover you for acts that are dishonest or fraudulent.

Neither general liability insurance nor professional liability insurance is designed to cover dishonest or fraudulent acts. They are designed to protect anyone from honest mistakes.

A mistake shouldn't ruin your career or cause you to lose your life savings. errors & omissions coverage is designed to cover inadvertent mistakes and allow you to continue on with your life.

An errors and omissions policy is, however, likely to cover you if you are taken to court due to a mistake you have made in your business or profession that is unintentional. Just as important is the fact an errors and omissions policy will cover you when you haven't made an mistake honest or otherwise, but someone is suing you any way.

Each generation tends go get more likely to sue. Professionals are being sued now at a rate that was unthinkable a generation ago. Should you think that you are in a profession that makes being sued a possibility, be careful. You just might be right.

There doesn't appear to be any limits to what a professional can be taken to court for. Sometimes the there is liability on the part of the professional. Sometimes the lawsuits are frivilous, but being sued can be costly whether or not you have any reason to believe that you have done something wrong.

If you are sued, you will probably find that your errors and omissions insurance company will pay all of your legal defense. The legal fees will not be deducted from the amount your company might pay to the party suing you. This can mean a savings of thousands of dollars. Being sued can be costly even if you are not guilty of an error or an omission.

If your profession puts you in a position of trust and a high standard of conduct is expected of you and other members of your profession you may need an errors and omissions insurance policy whether or not your employer mandates it.

The number of lawsuits filed against professionals tends to increase during tough economic times. Clients who are out of work are more likely to sue. Failing to properly insure yourself before you are hit with a lawsuit could mean the end of your career and any assets you have.