Professional Errors and Omissions Insurance is a type of errors and omissions insurance protects business professionals whose clients could claim damages as a result of the business professionals' faulty performance. The faulty performance may be because of a negligent act, error, or omission by the professional.
The Usefulness of Errors and Omissions Insurance Coverage
By Jack Whitener
Committing an error or mistake is not new to man. Being human, we find ourselves to be at fault even if we do not intend to do such slip. Errors usually come with a consequence. Most especially when you are in a legal business scenario that involves investments of other people's finances.
In the real estate industry, professionals working for the said sector face the risk of committing an error or omission in line with duties and obligations. When an error or omission is committed that causes financial harm to another, employees in the real estate market then face lawsuits filed by unhappy clients.
Employees from the real estate market are vulnerable to a downfall on their finances because of costs incurred for legal action in their defense when facing such lawsuits. By nature, legal services and actions are expensive. But nowadays insurance company offer insurance not only for the items sold by real estate workers, but also insurance to save them from a sudden financial crash.
An Errors and Omissions Insurance Coverage is in place to protect real estate professionals from loss due to lawsuits filed related to an error or mistake made in line with the job's responsibilities. Simply put, the insurance company pays for all expenses of legal action in defense of the insured.
The advantage of having an E&O (as how it is popularly called) typically include payments for claims filed against an error, omission, or any form of neglect in regard to the duties of the insured as a real estate professional. All defense legal action expenses for claims within the policy period also are covered.
The common exclusions of an Errors and Omissions Coverage are claims that result from dishonest or criminal acts committed by the insured, claims relating to polluted property, claims against insured for any bodily harm or death to another has been done, and claims that arise from damage to someone's property.
An Errors and Omissions Coverage has its liability limits. This of course depends on the policy availed from the insurance company. Some policy options given by other insurance companies for the said coverage may also offer more inclusions.
The Errors and Omissions Insurance Coverage is one security measure to be taken for those working in the real estate industry. Coverage usually starts upon an initial payment for the policy. But some companies may require the insured to pay for the damages and costs of defense, if the insured is proven to be at fault.
Few things are worse than making a mistake on the job and not having something like errors and omissions insurance to cover you. Prevent this by getting your errors and omissions now.
Article Source: http://EzineArticles.com/?expert=Jack_Whitener
Errors and Omissions Insurance - A Vital Component in Protecting Against the Unexpected
By James Cochran 
Many business owners have taken proper steps to insure against property loss and injury claims, the more traditional forms of commercial insurance coverage. However, they may have overlooked protecting themselves against claims of professional negligence.
Errors and Omissions (E&O) insurance, also known as Professional Liability insurance, protects organizations or individuals against claims of financial loss due to negligence in the delivery of professional services. Professional liability related to errors or omissions, whether actual or merely perceived are not covered by General Liability insurance. (General Liability essentially covers claims of bodily injury or property damage.)
As the business climate grows more complex, so do the insurance needs of business owners, regardless of whether they employ hundreds of consultants or operate as a sole proprietorship out of their home. Errors and omissions insurance coverage is critical and it protects businesses in two vital areas: legal defense fees and settlement expenses.
Most E&O policies will cover defense costs, which, even if the allegations are found invalid, can cost tens of thousands of dollars. For many small businesses and individuals, high legal defense costs could lead to serious financial strain or even bankruptcy.
Who's at risk?
Professionals who most commonly need E&O insurance include doctors, lawyers, engineers and consultants. However, there are a handful of businesses in which E&O coverage is often overlooked, these include advertising agencies, Web hosting companies, service providers, Web and graphic designers, and other Internet-based service companies. Nearly every organization that provides a professional service to a client for a fee has E&O exposure, and because professional requirements are typically undefined in legal terms, Professional Liability insurance shields businesses from the unforeseen.
In some cases, subcontractors may be required by the client to provide proof of General and Professional Liability insurance. Any business that provides specialized service or performs work on a project that is critically important to the client's business, will want to insure themselves against E&O claims. This risk opens the contracted business to potential litigation. If a client perceives a task was not carried out as promised, they can file claims on several issues, including:
* Software or system failures that cause a client to lose profits
* Failure to perform duties
* Loss of client data
* Copyright infringement on Web site and software development
* Failure to meet pre-determined benchmarks on specific projects
While quality control can reduce the risk of errors and omissions, no company has complete immunity to it. Even with the best and brightest employees serving on the frontline, mistakes will happen and if the client feels the service was not completed as promised, if it costs the client money, or damages their reputation, then the company could be at risk of E&O litigation.
Ensuring the policy meets the company's needs
Costs for errors and omissions insurance coverage vary significantly. Many factors are taken into account such as, the type of business, the type of services provided, the location, claim history, and size of the business. The competition among insurance providers, however, works to the business owner's advantage, and the process for receiving an E&O insurance quote, cost comparison and detailed policy information should be fairly simple.
While the process will vary, some insurance company underwriters will ask for copies of contracts and descriptions of quality control procedures, while other underwriters may simply request an application be completed. When searching for an E&O insurance quote or reviewing a policy there are several key features to be mindful of:
* Coverage should include legal defense costs.
* Both W2 employees and 1099 subcontractors should be covered - the company should be protected against claims from work performed by 1099 subcontractors on the company's behalf. In many cases, however, 1099 personnel are not covered and would need their own errors and omissions insurance coverage.
* Optional coverage for allegations of copyright and intellectual property infringement - this protects the company from claims alleging copyright infraction. Intellectual property infringement coverage is particularly important for software, systems or processes, as they are the most widely known "intellectual properties."
* Personal injury coverage such as claims of libel, slander and invasion of privacy
* Worldwide coverage - this covers incidents regardless of where they originate.
Defending a claim
In the event a claim is filed, E&O insurance will adequately prepare the company to defend its case. It will pay for a strong legal defense and potentially save a small business or individual from severe debt. Unfortunately, laws and legal precedents that govern the technology industry are still under development, which often puts IT professionals in unknown legal territory.
However, while mistakes are bound to happen, there are a few steps businesses can take to mitigate claims:
* Have a written contract detailing what service will be provided, what is not included and the fees for delivering that service
* Communicate throughout the entire job; give the client realistic expectations upfront and provide regular status updates
* Implement quality control procedures, and regularly conduct audits to ensure the procedures are being adequately executed
Once the contract is written, be sure it contains very specific information, including:
* Limits of liability - the dollar amount per occurrence of liability
* A section detailing the services the company will be providing
A written contract is one way businesses and individuals can protect themselves, however E&O insurance will provide an extra layer of protection against the unknown and unexpected. Defending a claim is costly and time consuming. Regardless of whether a suit is deemed unreasonable, attorney fees will still need to be paid. In some instances, costs for defending a case can exceed the cost of a resulting settlement. E&O insurance covers attorney fees, any settlement costs that may result, and allows the business owner to continue operating without fear of potentially having to face bankruptcy or a mountain of debt.
James Cochran is the founder of Techinsurance. Since 1997, Techihsurance.com has been providing high quality professional liability insurance at a reasonable price to IT firms across the nation. They quickly became a leader in providing business liability insurance, and have since maintained their position as one of the top IT business insurance providers.
Article Source: http://EzineArticles.com/?expert=James_Cochran
The Importance of E & O Insurance For Process Servers
By Kathleen Albright
We live in a society which has become litigious while, at the same time, increasingly concerned with privacy rights.
This can be particularly difficult for litigators because not all the facts of a case may be accessible. This leads to the possibility of an error or omission occurrence.
Repercussions due to an error can be extremely costly. This is why a reputable process server will carry errors and omissions insurance. This E&O insurance is also protection for their clients.
It is realistic to expect that sometimes inopportune circumstances occur despite the best risk management strategies. For example, a traffic tie-up or accident may prevent a server from perfecting a rush service on a Defendant by a court ordered deadline. The server's errors and omissions policy will cover any legal action initiated in relation to such occurrences.
As with any professional or business, a a person who serves process is susceptible to frivolous claims that can implicate their clients as well. Errors and omissions insurance will cover defense of such a claim.
The typical amount of insurance carried is $1,000,000 per occurrence. Errors and omissions insurance is especially tailored to take into account the possible liability situations particular to the profession.
Errors and omissions insurance also provides the extra reassurance that the process server is legitimate. Having insurance coverage demonstrates that the individual is organized, responsible and willing to rectify an unfortunate incident.
A professional with errors and omissions coverage is protective of their respectable business name and willing to stand behind their reputation.
This insurance coverage also proves a commitment to their clients. It illustrates a policy of providing the best services possible. It also differentiates credible process servers from "fly by night" operators.
In the unlikely event an unavoidable error or omission occurs, you can have confidence that your professional server's insurance coverage will safeguard you.
Kathleen Albright is the owner of Professional Attorney Services LLC, a private investigative and professional process service agency in Boulder, Colorado. Her services include process serving, skip tracing and background checks. She is dedicated to providing professional, ethical and reliable work to all her clients. If you are looking for a professional Colorado process server, visit Professional Attorney Services, LLC at http://ProfessionalAttorneyServices.com
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