28 Jun Errors and Omissions Insurance: Who Needs It?
If you run a small business, then you already know the importance of having the right insurance policies. You need to have coverage on your property and building, any company vehicles, and if you live in an area prone to hurricanes or flooding, the related policies that provide that just-in-case coverage.
However, there’s one insurance policy that you might be lacking: errors and omissions insurance. What is it? Who needs it? We’ll answer both of those questions here.
What is Errors and Omissions Insurance?
Errors and Omissions Insurance is designed to help out small businesses that offer professional services. There are plenty of things that can go wrong when operating an accounting or marketing firm, from making a mistake that leads a client to be audited by the IRS or releasing an ad campaign that has a major typo in it. Errors and Omissions insurance is designed to pay for any legal assistance that’s needed, as well as any claims, fines, or penalties that you may be forced to pay should you get sued by a client. In other words, Errors and Omissions insurance acts like a form of professional liability insurance.
Who Needs Errors and Omissions Insurance?
Although any business that falls within the professional services field could use Errors and Omissions Insurance, here are some of the types of companies that need it the most:
- Real Estate Agents – From title issues to problems with listing a home for sale, there are plenty of reasons why a real estate agent may need professional liability insurance. You never know when something will go wrong with a listing or a sale.
- Accountants and Bookkeepers – Whether you only do people’s taxes or keep an eye on a company’s books throughout the year, if you make a mistake as a bookkeeper, accountant, or tax preparer, you could end up getting sued by a client.
- Consultants – No matter the type of business that you do consulting for, it’s always a good idea to be prepared. After all, you never know when the advice that you provide will lead your clients down a problematic path.
- Graphic Designers and Advertising Agencies – There are some businesses where appearance means everything, and in this case, which means producing ads or designs that are unproblematic, don’t contain typos, and fall under fair advertising laws. However, mistakes do happen.
- Technology Experts – Do you run a business where you repair other people’s computers? Do you create software on a freelance basis? Or do you run your own cybersecurity firm? Things can go wrong with all of these businesses, which is why you need to have insurance in place.
Purchasing Errors and Omissions Insurance
If you have any questions about whether or not your small business needs Errors and Omissions Insurance, give us a call. We can answer your questions, provide you with the policy that you need, and make sure that you have all of the coverage that you need to protect yourself and your business should something happen.
Wondering if you need an Errors and Omissions Insurance policy? Our knowledgeable team at Spivey Insurance can help review your current coverage or help you set up a new policy. Contact us today.