All About Professional Errors & Omissions Insurance

Update August 31 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-08-29T08:38:00.000-07:00

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.

Errors and Omissions Insurance - A Beginner's Primer
By Michelle Hirsch

Errors and omissions insurance provides important coverage to professionals in a wide variety of fields, running the gamut from accountants to film crews to pet groomers to funeral home directors.

Due to its critical nature, it's crucial for professionals to make sure they select an agent well-versed in errors and omissions insurance. Because general liability insurance is much different from E&O, even the most knowledgeable general liability agents usually don't have the right expertise to provide the necessary errors & omissions coverage.

To find the right errors and omissions insurance for your needs, a simple online search to can help identify appropriate agents or brokers. Asking colleagues for referrals is another good option, while some professionals, such as CPAs, can check with their industry's professional associations for suitable recommendations.

Once you've identified potential matches, ask if they can provide:

The number of errors and omissions policies in your profession on their books
Several references
Payment options
Coverage for independent contractors and additional insureds
A policy tailored to your specific circumstances
The ability to choose from among several different carriers

The last item is particularly important: Each carrier offers slightly varied errors and omissions insurance - being able to compare endorsements and coverage helps ensure finding the very best policy for your needs.

After you've found the right E&O insurance agent for your business, the application process is usually the same: fill out an application, provide a resume, and include the insurance portion of the contract you'll be working under (this allows the agent to tailor our errors and emissions policy directly to your needs without questions or uncertainties).

New businesses often are required to provide a business plan to help the agent determine the extent of their errors and omissions exposure.

Most errors & omissions insurance policies last for a full year and follow the company or individual for whom it was written. As you take on new projects or add staff, make sure to add specific names to your E&O policy as needed.

And, when renewal times rolls around, be sure to update your number of employees and revenue figures with your insurance agent.

Like so many things in life, an errors and omissions insurance policy is only as good as the effort you put into it. Be diligent in researching and vetting your E&O agent to ensure the best fit possible.

Michelle Hirsch is the Vice President at Brunswick Companies, a full service provider of insurance and risk management products including errors and omissions insurance.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Article Source: http://EzineArticles.com/?expert=Michelle_Hirsch

Update August 14 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-08-13T09:22:00.001-07:00

Business & Professional Liability Insurance
By Lousie Smith

Every business venture in any part of the world is subjected to several constraints and one of these is the liability that one needs to consider and protect. The liability is a consequence of various errors and omission (also known popularly as E&O) that take place even though extreme caution is exercised to avoid any foreseeable mistakes. Thus it is necessary to carefully plan the concept of business liability insurance to avoid distressing and undesirable legal actions from diverse sources. Insurance companies have therefore evolved comprehensive liability insurance cover for business clients that will as some of them term slash your risks quite considerably. It also increases your business confidence to a large extent and enables you to carry out activities with minimum worry of such risks. Almost all businesses need to invest in liability insurance if they have to comfortably work in an environment that is governed by the consumer's authorities and concerns. It also helps in marketing their instruments that assure the prospective customers to become their long term clients. The Internet will be able to guide you in locating the most prominent and professional organizations that provide such liability insurance cover.

Business liability cover is not the only insurance available to the corporate or personal world. The professionals who work in organizations or those who are self employed or owners of businesses can also experience problems with the errors and omissions laws that can cause distressing situations in the course of the commercial activity. The same insurance companies who provide business insurance cover handle the personal insurances needed by the individuals or professional bodies. This type of cover is appropriately called professional liability insurance for coverage of problems related to unpredicted litigation due to errors or omissions. This also covers the malpractice complaints and legal suits that commonly arise with medical and other professional practices. The insurance cover is a must for all professionals in any field as it will allow you to work confidently in your chosen line and yet exercise restraint and ethics with minimum risks of E&O that are really a part and parcel of our daily business life. This type of cover is extremely important for every professional in any sphere and must be taken for a comfortable practice of one's profession.

For more information on business liability insurance and professional liability insurance, visit our website

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Article Source: http://EzineArticles.com/?expert=Lousie_Smith

Update July 28 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-07-27T12:19:00.000-07:00

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.
Recommended Reading
An Insurance Insider Exposes The Shady Practices And Underhanded Tactics Used To Devalue Claims For Insurance Company Profit

Errors and Omissions Insurance
By Matheson Thumgard

Almost every business in the world can benefit from the use of errors and omissions insurance. If you are running a business, then you are liable for the types of benefits and damages your customers receive from your services. Customers have a right to file lawsuits against your company if they ever face damages resulting from an interaction with your business. For this reason, if you want to avoid legal liabilities that can destroy your business, then you should be interested in purchasing this type of insurance to keep yourself safe.
Mishaps can occur practically anywhere and at anytime. This is why you should always be prepared with your business. If an accident does occur in your business, and your customer wants to recoup the damages they incurred from your business, then you may face legal issues that can cost you large amounts of money, and in some cases your assets. For this reason, you need to protect your yourself, your business, and your family to make sure you are running your operations in the most secure way possible.
There really is no limit to the amount of damage that a business could accidentally cause to a customer. This is why there is also no limit to the amount of damage your business could face from a potential lawsuit. This is why errors and omissions insurance is so important. No matter what events occur relating to your business, the insurance company can cover the costs of legal fees and keep your assets safe.
The damages professionals were once facing from lawsuits of this kind became such a nuisance for businesses that some parts of the world actually mandated this type of insurance for companies to remain in operations. Anyone who protects themselves with this type of insurance can sleep at night knowing that their money is safe and sound.
This insurance is also important to your customers. If you do not have this type of insurance, customers may have no way of recouping the losses they face from interacting with your business. If you provide faulty products and services to a customer when you have this insurance though, clients can easily recoup the damage they incur from their relationship with your company.
Many people buy this type of insurance to keep their business and their family safe from misfortune. Other businesses find that their customers feel safer when interacting with a company that purchases this insurance to back up their products and services. Whatever your reason is for buying this insurance, you will know that you will be safe under any circumstances you may face.
With E & O insurance coverage, your company has protection against the services you provide causing financial damage to your customers. You can request an errors and omissions insurance, or professional liability insurance quote online to see what this coverage will not only cost, but how it can help your business.

Recommended Reading
An Insurance Insider Exposes The Shady Practices And Underhanded Tactics Used To Devalue Claims For Insurance Company Profit

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update July 10 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-07-09T17:34:00.000-07:00

Lapsing E&O Insurance Coverage - How to Keep Continuous Liability Insurance Coverage

By Jim Cochran

If you've decided to purchase professional liability insurance, you know the value of protecting your business against claims of professional negligence. But it's also critically important to understand the reasons why, as long as you're in business, you should never let your policy lapse.

Claims Made Vs. Occurrence Insurance Policies

Also known as errors and omissions insurance or E&O insurance, professional liability coverage comes into play when and if a client should allege that you or someone you employ made an error or omission in the course of doing your job, causing the client a financial loss. In such cases, E&O claims insurance would pay for your legal defense as well as any settlement the court orders you to pay as compensation to your client, for any covered claims up to the limits specified by your policy.

Professional liability policies are nearly always written on a claims-made basis rather than an occurrence basis. What this means is that coverage depends on two factors: when the alleged omission or error occurred, and when the lawsuit is brought.

Retroactive Date of Inception

The most important dates to keep in mind are your policy's termination date and its retroactive date of inception. What is a retroactive date of inception? Also called a "prior acts coverage date," your retroactive coverage date (a.k.a. retro date) establishes exactly when your coverage begins. In most cases, this date will be the date you first bought your policy. Some comprehensive E&O insurance plans also offer prior acts coverage, in which cases your retro date may be a date prior to your policy purchase.

For a claim to be covered, the alleged error or omission must be covered by the policy and must have taken place on or after the retroactive date of coverage, but before the policy's expiration date; and the claim must be made while the policy is still in force. The claim must also be reported to the insurance carrier within the time frame stipulated by the policy.

So, let's say you bought your errors & omissions coverage June 1, 2008, and that's your retroactive date of inception. Any claims related to errors and omissions you may have made prior to that date aren't covered. Your policy's termination date was May 31, 2009, but you renewed it to maintain continuous coverage. Your renewal date was June 1, 2009, so your new termination date is May 31, 2010 - but your retroactive date of inception is still June 1, 2008. Any covered claims related to work between June 1, 2008, and May 31, 2010, would be covered - as long as they are made and reported to your carrier while your policy is still in force.

But what happens if you choose not to renew your E&O policy? Let's say a client hires you to do a project, but stipulates in the contract that you must purchase E&O insurance for your business. When the contract job is complete, you let the insurance policy lapse because you think it's no longer needed. Months later, your client slaps you with a lawsuit alleging that it was able to trace the cause of a financial loss back to a mistake you made while working on the project. Because your E&O insurance policy is no longer in force, you have no coverage for that lawsuit - even though the policy was active when the error was made.

Regardless of what your retroactive coverage date is, if you let your claims-made policy lapse, your coverage for prior acts is gone. You could lose coverage for years of work. Coverage starts all over again, with a new retro date, on the day your policy is reinstated.

Tail Coverage

Does this mean that you'll need to pay premiums to continue your professional liability policy indefinitely, even if you retire or decide to close your business?

In such cases, you can purchase coverage for an extended reporting period beyond your policy's expiration date, allowing continuous coverage for any claims that may be brought after your business has ceased. This extension, known as "tail coverage," typically lasts from one to five years.

Tail coverage only includes claims related to errors and omissions that took place after your retroactive coverage date of inception and while your business was operational; it doesn't cover claims related to work you may do after your business has closed.

Costs for tail insurance coverage vary, as can the amount of time coverage is extended, so ask your agent or broker for details.

Jim Cochran is the owner of TechInsurance, an online provider of errors and omissions insurance. His company provides professional liability insurance quotes to thousands of IT-related businesses, making him the one of the top providers of IT Insurance in the United States.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update June 20 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-06-20T08:26:00.001-07:00

Errors and Omissions Insurance - A Professional Necessity

By Jeff Dixon

A profession may be lucrative enough but it can also be the cause of unexpected expenses. This usually happens when mistakes occur in the giving of one's professional service. Even with the education and training, a professional may still commit errors that can lead to damage claims. After all, human beings are always prone to commit errors and omissions. Unfortunately, such monetary demands may be too big it can push someone to the brink of bankruptcy.

No matter how skilled a professional is, mistakes can never be totally avoided. These are like ghosts that will always haunt one even as he tries to focus on executing his job. Since it cannot be completely avoided, the best measure to be taken is to prepare for possible expenses that will be incurred in such cases. Being insured under an errors and omissions policy is necessary.

This type of insurance is a guarantee that there is always enough money needed to satisfy damage claims. For example, doctors who may face suits because of malpractice may not worry about the consequential expenses if they have already prepared money for such events. Even insurance underwriters may need to be covered with it too. Some minor mistakes can be enough cause for litigation, which can cost a lot of money.

Real estate appraisers are definitely just as prone to commit human errors. Any wrongful appraisal that can result in harm to the financial conditions of others may require remuneration. If one is already safeguarded with errors and omissions insurance, so he won't have to worry where he will find money for the repayment. All that he needs to do is to ask his insurance provider to give him the necessary funds for the said purpose.

The most common use of this type of insurance is for defense claims. Oftentimes, when a client becomes a victim of professional malpractice, his only way to get back his money and reputation is by seeking the protections of the laws to achieve both. Therefore, he may file cases against the professional whom he has an issue with. The professional may want to negotiate with the client first but he will still be required to pay for the claims. Otherwise, he will need money too in order to defend himself in court.

Obviously, the best time to buy errors and omissions insurance is before the practice of a profession is made. Costly mistakes can occur very early in a career. With such safeguard early in place, then these can certainly be covered already. However, this is not an excuse to commit errors again. Otherwise, the worse harm on one's name is made. This is something that cannot be repaired by insurance policies of any kind.

Protect yourself from Errors and Omissions mistakes with the right insurance. With the right protection you work without worry from unintentional mistakes.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update May 31 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-05-31T04:49:00.000-07:00

Foreclosure Cleanup - E&O Insurance Vs Liability & How to Determine Which You Need in Your Business

By Cassandra Black

Some foreclosure cleanup companies are saying they are being asked for proof of Errors & Omissions insurance by larger contractors before they can act as a subcontractor.

Here is a query received from a foreclosure cleanup business colleague just recently:

QUESTION: I have talked to my insurance agent, and if I am only doing trashouts, interior cleaning, and lawn maintenance, why are some of these large asset companies requiring me to have errors and omissions insurance?

E&O Insurance vs. General Liability

Below is a detailed explanation of E&O versus General Liability Insurance so you are knowledgeable about insurance as it relates to the industry as you prepare to grow your business. You'll be surprised at how often you'll know more than the person on the other end of the phone line seeking to give you work orders. This knowledge can help you land foreclosure cleanup jobs going forward because the person will immediately form a positive impression of your company.

Gist of E&O Insurance

Errors & Omissions insurance ("E&O"), also referred to as professional liability, is a form of business liability insurance for professionals such as Realtors, brokers, insurance agents, architects, third party-type administrators and other business professionals. (Think malpractice insurance.) Its premise? To cover errors (mistakes) or omissions that lead to financial harm to another, which can really occur on almost any transaction in any profession.

E&O aids in protecting the professional or company from bearing the full cost of lawsuits (the defense) relating to the error, mistake or omission while providing the professional service. E&O does not replace liability; it is a separate coverage from a standard general liability policy.

Generally, foreclosure cleanup companies do NOT need Errors and Omissions insurance; but confusion arises (often in-house at property preservation companies) because the exact same vendor sign-up application used for Realtors, brokers, and similar professionals working for property preservation companies is often used for foreclosure cleanup service companies working for property preservation companies.

On that vendor application, there is indeed an area for Realtors and brokers to provide proof of E&O insurance -- and the E&O coverage requirement is the industry norm for Realtors and brokers.

What is General Liability Insurance?

Coverage under general liability insurance primarily includes claims against bodily, personal, and advertising injury, as well as property damage. Advertising injury covers damage from slander or false advertising. Liability insurance generally provides asset protection for a business when it's sued for something that causes injury or property damage. The insurer pays the legal tab of a business in a covered liability claim or lawsuit under a general liability policy.

Comparison

Just remember that E&O is really insurance to protect you and your business in the event a client alleges they've suffered a financial loss as a result of an error or an omission committed by you in the delivery of your professional services, whereas General Liability is designed to provide coverage to you for primarily bodily injury, advertising, or property damage liability.

Query the Company Asking You for E&O

If a property preservation company or larger contractor asks you to provide proof of E&O, please query them to be certain they really want your type of company to produce that type of insurance. Let them know you are a foreclosure cleanup company seeking to work with them on a subcontracting basis as a foreclosure cleaning service provider -- NOT as a Realtor or broker.

Impress upon them that you, of course, have the required general liability coverage and can provide proof so you can move forward registering as a subcontractor with their company.

Continued success in your foreclosure cleaning business!

Cassandra Black is the Author of How to Start a Foreclosure Cleanup Business: FREE Articles & Advice Blog and How to Start a Foreclosure Cleanup Business eBook

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update May 11 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-05-11T05:35:00.000-07:00

IT Project Managers' Guide to Errors and Omissions Insurance

By James Cochran

One of the most important insurance coverages for any small business - and especially for independent IT project managers - is errors and omissions (E&O) coverage. Many small technology companies are not sure what it covers and how it differs from other types of insurance policies.

Here are answers to some of the most common questions that IT Project Mangers ask about E&O insurance:

What's the difference between professional liability and errors and omissions insurance?

"Professional liability insurance" and "errors and omissions insurance" are essentially different terms for the same type of insurance, which protects your business in the event that a client alleges that you or one of your employees made a mistake while providing IT services, causing that client to suffer a financial loss.

What's the difference between E&O insurance and general liability insurance?

While E&O coverage (also known as professional liability insurance) covers you for errors you may make while doing your job, general liability insurance responds to claims of bodily injury or property damage. For example, you or one of your employees injures someone or damages property at the client's location, or someone comes into your office and slips and falls. General liability is often required by contracts because clients will often want to make sure that any business providing services on their premises carries general liability insurance, whether it is a plumbing contractor or an IT contractor.

A Business Owner's Policy, also known as a BOP, includes both general liability insurance and property insurance. The property insurance portion of a BOP protects your business property (at your location or at a client site) against physical loss or damage by theft or fire, for example. A BOP is an excellent choice for many solo practitioners and small businesses.

Client contracts may require that IT project managers carry both professional and general liability coverage. While you can purchase general liability and property policies separately, buying them together in a BOP is generally more cost-effective and is an easy way to get more-complete coverage for the needs of most small IT businesses.

But doesn't general liability insurance already include errors and omissions coverage?

No. General liability doesn't protect your company in the event that a client should sue you for a mistake you make in the course of doing your work. General liability does cover bodily injury and property damage claims, but typically excludes litigation involving professional negligence or charges of failing to perform professional duties. For that, you need a separate professional liability insurance policy.

So, what kinds of risks does E&O insurance cover?

E&O coverage is triggered when your client alleges that you or one of your employees made a mistake in the course of providing IT services or IT project management services. For an IT project manager, a client could claim that you're responsible for a software design error that results in a system that does not perform as intended, or even for a project that takes longer than anticipated, causing costs to escalate or causing the client to lose business.

Of course, some types of business disputes are simply uninsurable, such as if the client fails to pay a bill or someone sues you for stealing a customer. That's why it's important to understand exactly what your E&O policy does cover, so that you can avoid these types of risks or employ legal contracts to cover them. It is also important to remember that E&O insurance is designed to defend you and pay legitimate demands for financial compensation from a client. An E&O policy will not reimburse you or compensate you for your internal costs to correct a problem.

I don't plan on making any mistakes that will get me sued. Do I really need E&O coverage?

The odds that you will be sued are statistically low. However, most business owners eventually reach a point where the risk of going without E&O insurance doesn't justify the savings. In a typical IT project, are there elements beyond your control? What happens if a subcontractor misrepresents their abilities and derails a project? If a developer makes an error in a line of code that causes the client to lose money? If the backup strategy you so carefully designed falls through due to human error, and important data are lost? If the contract is in your name, you're the one who will be held responsible.

The fact is, you don't have to make a mistake to get sued. Any client can sue you at any time, and regardless of whether that suit has merit, you'll have to pay for a legal defense. Nearly everyone has had a client that is difficult, even unreasonable. When you're blindsided by a lawsuit and don't have the money in your budget to defend yourself, it can threaten your ability to stay in business. Even when you do your best work, other variables can affect the risk.

How much does it cost?

The cost of E&O insurance will vary depending on your company's revenues and location, as well as the limits of liability and deductible you choose. Most one- or two-person firms can get $1 million in E&O insurance for around $1,000 per year. For most independent IT project managers, that is less than 1 percent of gross revenue, and the peace of mind that maintaining E&O insurance brings is often well worth it.

If you're not sure it is time to protect your technology business with E&O insurance, it doesn't cost anything to talk to an insurance broker to learn what your options are before you make a decision. Contact a technology insurance agent for a specialized quote.

Jim Cochran is the President of TechInsurance; a web based professional liability insurance company. For years Jim has been providing errors and omissions insurance quotes to IT project managers and small business alike. Jim's industry knowledge makes him a valuable resource when it comes to planning projects and obtaining liability coverage.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update April 18 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-04-18T07:20:00.000-07:00

Errors and Omissions Insurance

By Matheson Thumgard

Almost every business in the world can benefit from the use of errors and omissions insurance. If you are running a business, then you are liable for the types of benefits and damages your customers receive from your services. Customers have a right to file lawsuits against your company if they ever face damages resulting from an interaction with your business. For this reason, if you want to avoid legal liabilities that can destroy your business, then you should be interested in purchasing this type of insurance to keep yourself safe.

Mishaps can occur practically anywhere and at anytime. This is why you should always be prepared with your business. If an accident does occur in your business, and your customer wants to recoup the damages they incurred from your business, then you may face legal issues that can cost you large amounts of money, and in some cases your assets. For this reason, you need to protect your yourself, your business, and your family to make sure you are running your operations in the most secure way possible.

There really is no limit to the amount of damage that a business could accidentally cause to a customer. This is why there is also no limit to the amount of damage your business could face from a potential lawsuit. This is why errors and omissions insurance is so important. No matter what events occur relating to your business, the insurance company can cover the costs of legal fees and keep your assets safe.

The damages professionals were once facing from lawsuits of this kind became such a nuisance for businesses that some parts of the world actually mandated this type of insurance for companies to remain in operations. Anyone who protects themselves with this type of insurance can sleep at night knowing that their money is safe and sound.

This insurance is also important to your customers. If you do not have this type of insurance, customers may have no way of recouping the losses they face from interacting with your business. If you provide faulty products and services to a customer when you have this insurance though, clients can easily recoup the damage they incur from their relationship with your company.

Many people buy this type of insurance to keep their business and their family safe from misfortune. Other businesses find that their customers feel safer when interacting with a company that purchases this insurance to back up their products and services. Whatever your reason is for buying this insurance, you will know that you will be safe under any circumstances you may face.

With E & O insurance coverage, your company has protection against the services you provide causing financial damage to your customers. You can request an errors and omissions insurance, or professional liability insurance quote online to see what this coverage will not only cost, but how it can help your business.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Mar. 22 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-03-22T05:55:00.000-07:00

What is Error and Omission Insurance?

By Ben Newman

To make mistakes is a natural tendency of all human beings. This fact is proven by people who are still fallible even if they studied for years in renowned universities where they specialized on a particular course to be called experts or professionals. These people are expected to make no mistake during the practice of their professions. Yet, perfection and meeting the standard is not often the thing that happens as professionals have to fight battles in courts. However, there is error and omission insurance that can compensate for the troubles that resulted from the liabilities professionals made.

Error insurance refers to the kind of insurance that provides financial aid to a person or company who fails to achieve the promised results during the practice of his profession or at the time of rendering service to clients. This kind of insurance provides for the financial aid needed by a professional or company who made liabilities. Error and omission insurance is simply a big help because liabilities may result to being sued in court which can let professionals or companies spend large amount of money. Some cases filed may be groundless, but still they can make people spend their hard earned cash. Errors or omissions can be called in many names, however, professional liability is the general term used regardless of professions.

Error and omission can be availed of by doctors, lawyers, architects, accountants, engineers, wedding planners, and the like. The very professionals who need coverage from this type of insurance are those who render services for a fee. Companies that require E&O are also those who provide services to clients in exchange for a payment.

There is no standard set of policies for error and omission insurance. Since professionals have different exposures, the policies that suit for them vary too. The policies are set according to the claims made or reported at the time when the policies are at valid periods. Some set of claims made provide for the compensation for defense, while there are policies that do not provide compensation for penalties. In addition, the costs of error and omission insurance differ based on how much the said insurance will cover. This only means that people who plan to get this type of insurance must read thoroughly the E&O policies before making decisions in order to find the insurance firm that offer the greatest coverage.

Error and omission insurance firms may differ in their set of policies, however, there are cases that most of them consider as exclusions. Errors and omissions done at the time before applying for insurance are not included in the coverage. Error and omissions made deliberately are not also part of the coverage. Liabilities which cause deaths are never covered too. It only means that not all error and omissions can be part of the coverage of error and omission insurance.

The compensation provided by error and omission is very vital. Hence, if you are a professional who is capable of falling short of your profession, apply for E&O now!

Ben Newman has worked with professionals in their fields to help prevent errors and omissions law suits. The right insurance is an important factor in helping to prevent costly law suits.

Update Mar. 02 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-03-02T04:23:00.000-08:00

Professional Indemnity Insurance - Peace of Mind Ensured
By Richard C Clark

For any organisation to prosper and make a name in their respective fields, the business professionals working in the company are the ones who bring about a difference. Your managers and other senior staff work relentlessly for your clients by advising, managing and mentoring to get the desired results. This is achieved by understanding the needs and expectations of the clients. Thus, these professionals persistently work to fulfil the client's requirements.

When things go smoothly, there is no need to take cover for any exigency, but the fact is that we cannot always predict situations and that is when the need for a professional indemnity insurance is greatly felt and must be taken before any such exigency arises.

Situations like the customer not appreciating your service or product and withholding payments or stopping further orders - or even threatening to sue you in court - are typical business risks. But as a professional you should be prepared to face such a situation and that is when professional indemnity insurance comes to your rescue. It covers you against any out of court compensation claim charged by your client. The coverage extends to all the legal expenses incurred by you in case the client files a case against you.

This is indeed a very intricate insurance cover. The organisation or the professional must however ensure that all the details and information about the projects and the clients are shared with the insurance company. This enables the insurance provider to identify the coverage amount. This form of insurance provides coverage for claims against careless acts, errors or omissions, breach or violation of patents or trademarks, deceitful acts by an individual under your employment, any attempt of slandering, civil liability and so on.

The coverage would depend on the project contract amount, the repute of the client, amount of compensation awarded against you. Many of these claims come up literally everyday, but the truth is that we do not come to know of it. Hence, it is advised that your business should have this form of a cover and remain protected from such catastrophes.

Before identifying an insurance cover, you need to check out the various options and settle for the best deal. Some of the features which would benefit your business include policies befitting your business needs, coverage for claims due to negligence or deficiency of employers or workers, hassle free renewals and more.

The best way to compare the policies is to check out for online insurance quotes and decide on the right one. Ensure that you read the document carefully and find out the limitations and exclusions of the policy, the coverage amount, coverage with regards to legal proceedings. Do not forget to verify if an out of claim settlement is covered by the policy. The insurance provider should also be registered. Professional indemnity insurance shifts your burden and tensions to the insurance provider, on payment of a fee (which is referred to as the premium). This ensures peace of mind for your business.

For more information about Professional Indemntiy Insurance visit Flint Insurance.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Feb. 09 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-02-09T04:05:00.000-08:00

Professional Liability Insurance - Beware of a Lapse in Coverage

By Ron Cseh

If you have a professional liability (errors & omissions) policy, lapsing your policy for even one day can leave you open to a potentially devastating lawsuit down the road. Most E&O policies are written on "claims made" basis. This means that the policy covers claims that are reported during the current policy period, even if the claim happened in the past. However, there are two criteria that need to be met in order for the insurance company to respond to the claim. First, you must have a E&O policy in force at the time a claim is made. Second, you must have had continuous E&O coverage from the time of the incident to the time the claim is reported.

The starting date of your continuous coverage is called the retroactive date which is the earliest date an event would be covered. Usually, this is the date you first started your E&O policy. However, should you lapse your policy for any period of time, and then start another policy at a later date, your retroactive date is reset to the date the new policy started. So, if you let your E&O policy lapse, you will not be covered for claims that occurred prior to your new retroactive date, even though you had insurance at that time.

As an example, suppose you had an E&O policy in force for 5 years. In your 6th year, you let your policy lapse due to financial reasons. Sometime after that, your policy is reinsated. In your 7th year, you receive a letter from an attorney representing a former client. Apparently, the former client is unhappy with some work you did 4 years ago and is suing you for $100,000. You submit the claim to your insurance company and are shocked to hear that the claim is being denied, even though you had insurance at the time you did the work for the client. Due to the lapse in your policy and subsequent re-instatement, your retroactive date is now the date of the re-instatement and not the date your first policy started 7 years ago. As a result, you may be personally liable for the suit of $100,000 plus defence costs.

Here are a few thing you can do to prevent your E&O policy from lapsing.

If cost is an issue, find a broker that specializes in professional liability insurance who can shop for a premium that you can live with. Remember that retroactive dates are portable and will follow you even if you change insurance companies.

Set up a renewal reminder notice using your calendar or contact management system. You should allow sufficient time (1 to 2 months) to budget for the premium or allow your broker to shop for a better rate.

To find out more about professional liability insurance and other insurance products, visit the Insurance Resource Centre.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Jan. 22 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-01-22T08:22:00.000-08:00

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 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

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Jan. 03 - 2010 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2010-01-03T04:14:00.000-08:00

Why Should Accountants and Bookkeepers Get Errors and Omissions Insurance?

By James Cochran

A common misconception is that doctors and lawyers are the only professionals in need of Errors and Omissions (E&O) insurance. In fact, nearly every organization that provides a service to a client for a fee has E&O exposure, and because professional requirements are broadly defined in legal terms, Professional Liability insurance shields businesses from the unforeseen.

Errors and Omissions insurance, also known as Professional Liability Insurance, protects organizations or individuals against claims of professional negligence throughout a variety of professional services. This includes errors or omissions that the company actually made or that the client perceives were made. Errors and Omissions claims are not covered by General Liability insurance.

Insurance for Tax Preparers

Errors and Omissions insurance is particularly important for Certified Public Accountants, bookkeepers and tax preparers. Every year, in the U.S., thousands of suits are filed against tax preparers and bookkeepers, and, in the wake of nearly every corporate scandal, new lawsuits arise.

For bookkeepers, tax preparers and accountants, the tax and audit landscape is constantly changing. Clients rely on these professionals to be up-to-date and accurate, but no matter how polished a tax preparer or accountant is, and regardless of how seamless their risk management procedures are, mistakes will happen.

For instance, if a client is audited on their tax return, and there is in fact an error resulting from a simple miscalculation on the tax professional's part, the tax professional would be held responsible for any IRS-assessed penalties and interest the client was charged. Also, if the preparer overlooked or failed to include information provided by the client, they would also be at fault. Even if a client failed to provide a piece of information to the tax professional and then filed a frivolous suit, the tax preparer would still have to pay potentially exorbitant legal fees to defend themselves.

Even the most minor mistakes can cause substantial problems for clients, and without Errors and Omissions insurance for tax preparers, a firm or individual would likely not be able to survive even a single claim brought against it.

Bookkeepers Require Coverage Too!

Likewise, bookkeeper Errors and Omissions coverage would protect the bookkeeper in similar situations where figures might have been miscalculated or information was omitted, regardless of whether or not it was their fault or their client's fault.

History has shown that when a major corporate scandal is uncovered, racketeering lawsuits against accountants typically increase. According to an article published by the Manhattan Institute for Policy Research, during the late 1980s, in the midst of the Securities and Loan debacle, damage claims against accountants were estimated to be between one and four billion dollars - a figure that was purported to exceed the net capital of all accounting firms combined (Lawson & Olson). While some were involved in ill doings, others were reputable professionals. While a litigation onslaught of this magnitude may never be repeated, it is a risk that E&O insurance for accountants will safeguard against.

Most E&O policies will cover judgments, settlements and defense costs, even in cases in which the allegations are found to be frivolous. Without Errors and Omissions Insurance, the cost of paying settlements and court fees would leave many bookkeepers, accountants and tax preparers in extreme debt, or even bankruptcy.

James Cochran is the founder of Business Insurance Now, a company specializing in small business liability insurance. Business Insurance Now also offers professional liability insurance for accountants or those in the consulting industry and workers comp insurance to cover your company's employees.

Article Source: http://EzineArticles.com/?expert=James_Cochran

Errors and Omission Insurance Coverage

By Caressa Waechter

Business professionals such as real estate agents require errors and omissions insurance to protect them from paying full law costs when a possible lawsuit arises due to an error or omission in the services they provided. This insurance is separate from general liability or property insurance.

Errors and omissions insurance may be referred to as E & O or malpractice insurance. It may be referred as this for doctors, dentist or chiropractors. Errors and omissions insurance should be purchased when a business is first started and included in their insurance portfolio.

There is no standard for E & O insurance. Each practice is different and will require different insurance needs. An insurance company underwriter will assess the practice and what work is undertaken at the premises and supply a policy that will cover all the practice's needs. These policies are written on a claims made and reported form, meaning that any claims must be made and reported within the time of the policy. Claims that arise out of the policy date will not be covered.

When applying for a policy an insurance underwriter may want to view the businesses quality control procedures, documentation practices and training procedures and if you have had any previous claims.

The cost of E & O insurance varies greatly from company to company. E & O insurance will cover a company through judgments, settlements and defense cost and will possibly save a company thousands of dollars, even if the case is deemed groundless.

Once E & O insurance has been agreed upon, the business needs to keep running at a reputable level, having this insurance does not mean that the business should start doing procedures or performing tasks that could possible lead to a malpractice suit. This insurance is to protect from the unexpected incident or mistake that may arise.

If you are a professional that works for clients, then you probably need to be carrying E&O insurance. Also know as professional liability insurance, this type of insurance is pretty much mandatory for certain occupations.

Article Source: http://EzineArticles.com/?expert=Caressa_Waechter

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Dec. 16 - 2009 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2009-12-16T03:14:00.000-08:00

Speed Your Business Insurance Application Process Along With These Handy Tips

By James Cochran

Business insurance coverage, and particularly Professional Liability insurance, is important in any business industry, but for those companies that provide IT services, it is critical. While General Liability insurance coverage addresses claims of bodily injury or property damage, Professional Liability insurance, also known as Errors and Omissions insurance, protects organizations against claims of professional negligence and errors or omissions in professional work. Specifically, Professional Liability insurance for techs will help protect against cases in which a client is rendered unable to operate their business as a result of loss of data, or software or system failures, as an example.

During the application process, however, nearly 25 percent of the companies that apply for General Liability and Professional Liability insurance for techs are declined. Sometimes this is due to high-risk behavior on the technology company's part, but often it's a result of not thoroughly understanding what is being asked and not properly answering the questions on the application. There are, however, several steps companies can take to help protect against an application decline. These steps also apply when submitting information for technology insurance quotes.

* Be Honest: Practice the utmost honesty when answering all questions on the business insurance coverage application. Be sure to disclose all pertinent information, as this automatically opens the door to claim denials should the company become involved in a lawsuit. Claim adjusters tend to review original applications and technology insurance quotes for misrepresentations. This includes any statements that, if answered truthfully, would be considered reason for the insurance provider to decline an application. Not only will the claim likely be denied, but the company also runs the risk of loosing the insurance carrier's legal defense and settlement payments.

* Provide a Thorough Description of your Business Operations: Be diligent in providing thorough descriptions of your business operations. Simply providing a short one- or two-answer sentence gives the appearance that the company is hiding something. Underwriters will becomes suspicious, which could either result in a refusal for further consideration of the application or significant questioning, which slows down the underwriting process tremendously.

* If the Information is on the Company Web site, It Needs to Be on Your Application: When insurance providers are considering a company for business insurance coverage, they make it standard practice to thoroughly review the company Web site. If the site contains any contradictory information, "red flags" are automatically raised. This could be as simple as a tech company, in an effort to appear more professional to prospects, listing a broad scope of work in which they specialize even though they are not currently performing that work. If the underwriter finds such contradictories, they may reject the application or request more answers, which also can slow down the underwriting process, leaving the business uninsured and vulnerable.

Article Source: http://EzineArticles.com/?expert=James_Cochran

Product Liability vs Professional Indemnity Which is Better for You?

By Maria Dawson and Garret Akerson

One of the areas of greatest confusion is the difference between Professional Indemnity, General Liability and Product Liability Insurance. Professional Indemnity Insurance provides coverage for professionals (corporate or individual) for any negligent act, error or omission alleged to have occurred while in the performance of their professional activities and duties. It differs from General Liability and Product Liability Coverage in that the acts covered are those acts performed by an engineer, architect, doctor or attorney in rendering professional services to their clients. To better understand this coverage we will have a brief discussion below of Product Liability, Professional Indemnity and the application of the latter and how it functions.

A. Product Liability

Product Liability is the legal responsibility of a manufacturer to a consumer of its' product. Liability arises out of the negligent manufacture of a product including defective or faulty workmanship, materials or components. It is a liability that arises from the failure of a manufacturer to properly manufacture, test or warn about its product and occurs when the product departs in a negligent manner from its intended function.

Product Hazards includes bodily injury or property damage arising out of the named insured's products, but only if the bodily injury or property damage occurs away from the premises owned or leased by the named insured and after physical possession of the products have been relinquished to others and is in the stream of commerce.

Completed Operations includes bodily injury and property damage arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs after such operations have been completed or abandoned and occurs away from premises owned by or rented to the Named Assured.

Excluded from General Liability and Product Liability Coverage is that negligence attributable to Professional Liability, which includes the services or consultations rendered negligently by architects, engineers, or other professionals.

B. Professional Indemnity

The Professional Indemnity Policy is designed to answer the professional services exclusion in the CGL/ Product Liability Policy. The Professional Indemnity Policy covers the negligent services of a professional to its client and covers an act of negligence, error or omission on the part of an assured in the execution of his professional activities. These professional activities usually include design, the drafting of specification, feasibility studies, calculations, maps and supervision of same by the insured professional.

Professional Indemnity, or Errors & Omissions, Insurance protects an insured, its employees and directors against liability arising from their professional negligence. It covers the Legal Liability to compensate a third party who has sustained injury, loss or damage created by the existence of a duty of care owed to third parties as a result of a negligent act, error or omission in the rendering of professional services by the assured.

In light of today's increasingly litigious society, Professional Indemnity Insurance provides important protection for the professional assured.

Coverage attaches under the Professional Indemnity Policy as soon as the design for the products begins and provides protection for any professional negligent act, error or omission which would result in a claim by third parties.

C. Applicability of Professional Indemnity Coverage

In discussing the applicability of Professional Indemnity coverage, certain basics should be kept in mind.

Firstly, Professional Indemnity is a third-party coverage that is a liability cover, not a property cover, which is provided to the assured for the claims against the insured from third party claimants.

Secondly, while coverage attaches from the beginning of the design phase of the project, a claim will not be until after delivery of the product and the product has left the premises of the assured.

Coverage for liability which occurs in the assureds' workplace must be found elsewhere, such as the General Liability, Builder's or Contractor's All Risk or Protection and Indemnity policies.

Thirdly, of course the claim must arise out of a failure in the professional services provided. There is some limited coverage afforded under the Professional Liability for faulty workmanship, materials and/or components. Also, included in the Product Liability cover would be any claim for defective materials or components, defect in manufacturing, or workmanship.

Fourthly, any inadvertent, non-intentional breach of a patent or copyright infringement is also covered under this policy.

In its history of providing insurance services to its clients for over thirty years, Nausch Hogan & Murray has provided coverage for all areas of liability - both on land and at sea. On landside we provide our clients with a short discussion of the various forms of liability coverage available in the market place, in order for them to better judge which best suits their company's needs.

Article Source: http://EzineArticles.com/?expert=Maria_Dawson

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Nov. 26, 2009 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2009-11-26T05:28:00.000-08:00

Professional Liability Insurance - Beware of a Lapse in Coverage

By Ron Cseh

Here are a few thing you can do to prevent your E&O policy from lapsing.

To find out more about professional liability insurance and other insurance products, visit the Insurance Resource Centre.

Article Source: http://EzineArticles.com/?expert=Ron_Cseh

Errors & Omissions Insurance for Graphic Designers: The Increasing Importance of This Coverage

By Ryan Mitchell

Do you think your commercial general liability (CGL) insurance policy will protect you from lawsuits alleging the failure of your product to perform or your failure to provide services to specifications…if so, you better think again. A general liability policy does not protect you from these exposures and as a result, you may have a gap in your liability insurance protection. This is why Errors & Omissions insurance, also known as Professional Liability and E&O for short, should be an integral part of a Graphic Designers liability insurance program.

Graphic Designers have two areas of exposure. The first is a media exposure from the designing and branding of a companies name and logo. These services give way to potential copyright and patent infringement claims. The second is a technology exposure from the designing and implementation of a web site.

The failure of many graphic designers to obtain E&O insurance reflects both a misunderstanding of the scope of protection offered and a “won’t happen to me” attitude concerning the potential risk of being sued. This insurance not only provides coverage for any damages that may be awarded but it also covers the defense costs associated with the claim.

Errors & Omissions liability claims alleging the failure to render professional services against graphic design firms are escalating. E&O liability provides coverage for claims with or without merit.

The good news is that protection is available and the cost of this insurance is becoming more affordable. There are now packages available for companies that offer a multitude of media services. Don't let your company go without this coverage.

Ryan Mitchell is a Professional Insurance Broker in Toronto, Canada. To learn more, please visit http://www.mitchellsandham.com

Article Source: http://EzineArticles.com/?expert=Ryan_Mitchell

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Nov. 08, 2009 All About "Professional Errors and Omissions Insurance" Information By Insurance Experts

2009-11-08T05:33:00.000-08:00

Professional Liability Insurance - Beware of a Lapse in Coverage

By Ron Cseh

Here are a few thing you can do to prevent your E&O policy from lapsing.

To find out more about professional liability insurance and other insurance products, visit the Insurance Resource Centre.

Article Source: http://EzineArticles.com/?expert=Ron_Cseh

Professional Liability Insurance For Service Businesses

By Caressa Waechter

All businesses will have some type of professional liability insurance for claims made by clients. Most of these claims have something to do with negligence. Accountants, physicians, architects and lawyers all will have a high level of coverage. You may be aware of this type of coverage for physicians is called malpractice insurance. Real estate companies will have a type of errors and omissions policy.

These policies provide coverage pertaining to omission of products, financial loss because of error, breach of warranty, security, intellectual property, personal injury and a failure to perform. Some other claims deal with inaccurate advices, misrepresentation, violation of good faith and fair dealing and negligence. A general liability policy will cover personal injury, advertising injury, bodily injury, and property damage.

All professionals are expected to have the correct technical knowledge needed to perform their job. If they cannot maintain their practice to within the expected skill level then they issues may occur where liability insurance is needed. It is possible to get professional liability insurance for home businesses, business owners, endorsements and homeowners.

When choosing providers you will need to determine what coverage is offered under each policy. There are different areas and coverage from criminal, administrative and civil policies. You can easily find information on providers by using the Internet. Another important factor is the type of service they provide and the claim filing procedures and well as who makes decisions about claims, how long it takes for the entire claim process to be completed, how you obtain legal defense and more.

Many times it is the company that is sued and not the individual that made the mistake, though there will be consequences for that individual. Many times the person claiming the injury may have made the claim but cannot substantiate it. You need to realize that in any business the company will do what is necessary for it to succeed and if that means sacrificing an employee then they will hand you your pink slip.

One popular type of professional liability insurance is errors & omissions insurance. Make sure you get more than one business insurance quote when you are shopping for professional liability insurance, to ensure you are getting the best rates.

Article Source: http://EzineArticles.com/?expert=Caressa_Waechter

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Oct. 20, 2009 All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-10-20T09:13:00.000-07:00

The Usefulness of Errors and Omissions Insurance Coverage
By Jack Whitener

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

Who's at risk?

Ensuring the policy meets the company's needs

* Coverage should include legal defense costs.

* 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

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

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

Article Source: http://EzineArticles.com/?expert=Kathleen_Albright

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Oct. 01, 2009 All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-10-01T05:58:00.000-07:00

Why Should Accountants and Bookkeepers Get Errors and Omissions Insurance?
By James Cochran

Insurance for Tax Preparers

Bookkeepers Require Coverage Too!

Article Source: http://EzineArticles.com/?expert=James_Cochran

E&O Insurance For Your Small Business
By David W Judge

Do you own a business which provides a service to your client for a fee? If so, you have an E&O (Errors and Omissions) exposure where your company can be sued for mistakes or omissions that result in financial losses for a client.

Also called "Professional Liability" or "Malpractice" insurance, Errors and Omissions (E&O) insurance should be considered by companies and individuals who work with clients in the areas of consultation, service providers, design or sales.

What is E&O insurance? It is a separate insurance policy that provides your business insurance coverage to cover judgments, settlements and defense costs that can result from errors (or omissions) that you have made or that a client perceives you have made. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit.

Do you need an E&O policy? The most well know professionals who need E&O insurance are doctors, lawyers, accountants, architects, and engineers, etc. However, if you provide a service to your clients for a fee you too have an E&O exposure. There are hundreds of businesses that fall under this category and range from wedding planners to advertising agencies.

Does your general liability policy cover E&O losses? General liability policies do not provide E&O coverage. A general liability policy does not provide coverage for errors, contract performance disputes or any other professional liability issue.

What should you look for in an E&O policy? E&O insurance helps protect you business in two vital areas. The first are attorney fees. Many times the cost to defend an E&O claim is more costly than the settlement itself. Even if you are sued with a frivolous law suit you still have to pay for your legal defense. Most E&O policies provide defense cost for your company up to the coverage limit on your policy.

The second vital area of coverage is to pay the amount of any settlement you would pay if found at fault. Presume that you are a wedding planner and you are to plan a wedding for June 11th but for some reason there is a mix up and you reserve the reception hall, band, caterers etc, for June 4th instead. On June 4th the band, caterers etc. all show up at the reception hall to find no one there, who pays? This is exactly what an E&O policy covers.

E&O policies vary from company to company so you need to make sure that your policy provides adequate coverage for your particular business. Cost for E&O policies also vary greatly depending on the class of business, location, claims experience etc. You should contact your local agent to discuss your business E&O exposures and determine if an E&O policy is right for you.

For more information and to receive an online instant quote for your business go to http://www.QuoteItNow.com

Article Source: http://EzineArticles.com/?expert=David_W_Judge

Errors & Omissions Insurance for Graphic Designers: The Increasing Importance of This Coverage
By Ryan Mitchell

Errors & Omissions liability claims alleging the failure to render professional services against graphic design firms are escalating. E&O liability provides coverage for claims with or without merit.

Ryan Mitchell is a Professional Insurance Broker in Toronto, Canada. To learn more, please visit http://www.mitchellsandham.com

Article Source: http://EzineArticles.com/?expert=Ryan_Mitchell

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update August 23, 2009 All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-08-23T05:47:00.000-07:00

Professional Liability Insurance For Therapists
By Michael Maitland

The profession of therapy demands personal interaction with people on a day-to-day basis and therapists face situations daily where you are open to the possibility of charges of wrongdoing. Your clients could hold you responsible for damages they have received, resulting from an alleged negligent act, error, omission or malpractice arising out of your professional capacity as a therapist.

In the unfortunate event that such an allegation is made, a Professional Liability policy will provide coverage for defense costs and expenses and any subsequent damages awards making this type of insurance essential for all healthcare professionals.

For those therapists that are employed by a Healthcare Service provider, the Professional Liability coverage placed by their employers will provide coverage for those incidents arising while the therapist is acting within the scope of their duties performed on behalf of the employing entity.

In addition to the coverage provided by an employers Professional Liability policy, it is also advisable for Therapists to consider purchasing an individual Professional Liability policy for the following reasons:

Do I have enough coverage?

Today's astronomical malpractice awards can quickly exceed coverage limits. If you, as an individual, are named in a malpractice lawsuit and your legal costs and settlement or judgment exceeds the limits under your employer's policy, you may be required to make up the difference. An individual policy will provide additional coverage up to the limits selected (typically $1,000,000 per claim / $3,000,000 annual aggregate).

Am I covered when I am off-duty?

Many policies cover you only when you're working. That means you could be financially liable for contract work performed after hours, Good Samaritan assistance, volunteer activities or even casual advice to a friend or neighbor. Individual policies usually provide protection to you 24 hours a day, 365 days a year.

Is my coverage shared with others?

If you're covered by an employer's policy, your liability limits may be shared by other defendants. Shared limits decrease your individual protection and increase your personal financial liability. Even worse, in some states you could be found liable for the financial responsibility of others. An individual Professional Liability policy provides 100% personal protection with no shared limits.

Does your employer-provided insurance include license protection?

In addition to being named in a malpractice lawsuit, one of the most serious risks that healthcare professionals face is the suspension or withdrawal of their license - without which you lose your ability to work. Employers rarely provide license protection, and in fact, may even be the source of the complaint. An individual policy will usually provide coverage for your defense of disciplinary charges arising out of covered medical or non-medical incidents.

To illustrate how therapists can be vulnerable to Professional Liability claims, the following is a summary of a recent claim filed alleging a negligent act, error or omission against a physical therapist:

Richey v. Turocy

The lawsuit was brought against the hospital, defendant orthopedic surgeon and the physical therapist. The plaintiff alleged that the defendant's physical therapy treatment caused a subsequent heart attack. The defendant hospital maintained that the defendant physical therapist was experienced, properly trained and should not be expected to make a referral outside the scope of the therapy. The verdict was rendered in favor of all defendants.

Reduce Your Risk with this Liability Checklist

As you begin each workday, your main goal is to provide the best possible care to your patients. But in this litigious society, you also have to make sure that none of your actions leave you vulnerable to a lawsuit. A quick reference of basic risk management guidelines may help to ease your concerns and no matter what field you work in, these basic tips can go a long way toward keeping you from being sued.

Know your job

Always ask yourself if the care you're about to give is within your scope of practice. If you have any doubts, consult your employer. Your employer has written standards of practice, based on your State practice act, your professional organization's guidelines, and your facility's policies and procedures.

Stay up-to-date.

Be sure you're competent to perform your job. Keep your certification current. Make sure you receive timely, adequate training on new equipment and never use equipment you haven't been trained on. If you feel your skills are insufficient in a particular area, ask about additional training.

Maintain your professionalism.

A patient is less likely to sue a healthcare provider she likes, so be sure to act professionally. Always treat the patient with respect. If possible, speak to her directly and maintain eye contact. Listen attentively and don't interrupt. Ask the patient if she has any questions: If her concerns fall outside of your scope of practice, contact the appropriate healthcare provider to come and see the patient.

Document, document, document.

It's become a risk management cliche, but it's true: If you didn't document it, you didn't do it. If you fail to write down that you did a thorough assessment or provided the patient with a particular treatment, it could become your word against hers in a lawsuit. Be sure to document the status of the patient before and after treatment, how receptive she was to patient education, and your response to any concerns she had.

Chart any telephone conversations you have with the patient, family, or other healthcare professionals about the case. Document, too, any time the patient cancels treatment or fails to keep an appointment. If she repeatedly misses appointments, make a notation of your attempts to contact her to discuss the problem. Make sure all of your entries in the patient's chart are legible and easy to comprehend.

Protect patient confidentiality.

Discuss the patient's care only with the appropriate personnel. Never talk about a patient in a public place, such as an elevator or cafeteria. If you have to fax patient information, make sure the recipient is standing by to receive the transmission so no one else reads it.

Article Source: http://EzineArticles.com/?expert=Michael_Maitland

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-08-05T13:36:00.000-07:00

Why You Need a Professional Liability Insurance
By Jitesh Arora

Professional liability insurance is a necessity for any kind of individuals who are working for a company or in certain fields. Professionals like doctors, lawyers, medical professionals, construction engineers need this insurance coverage for their most difficult times. A professional is entitled to face any sue against him at any situation. However well he may have worked and still he must have his professional liability insurance. Certain cases can be unwarranted of any legal actions against you. But still it may be expensive for you to handle it. With higher probability of suits made against professionals, the necessity to have the insurance cover also goes up. Liability insurance will save you a great amount of time and money in case of unlawful suits against you.

A life insurance company or your health insurance company may provide you with professional liability insurance. The insurance agent might help you to get a good deal with the companies. Have a detailed conversation with your agent and he will let you know the best deals available for you according to the profession. It is important for you to find an agent who can understand the potential of risk involved in your business. He will be able to show you the plans accordingly. Without having any knowledge about your profession, the agent may deceive you in getting a worthless deal. Hence it is good to pick your insurance agent in this way.

Look for agents outside your regular insurance company. You will come to know about the affordable rates which may suit you well. A person must understand the risk and potential of his own profession. Only then he will be able to make a good deal. In the worst case, the insurance companies may come up with a high premium deal for a low risk profession taking full advantage of the individual. Hence, introspection is needed here to purchase the professional liability insurance.

There are two ways to identify a potential agent. If you are able to get an agent through your existing provider, you may be able to save huge money on the package. You may not get it when you approach the insurance company individually. Members of specific organization may find that they have insurance providers who are willing to offer them a good deal through the company itself. The top level management should be considered to contact those providers.

An added advantage in getting professional liability insurance with your existing health or life insurance agent is that they will already have the full details about you. They might help you in getting a good deal according your professional requirements. The stress to find the right plan is eliminated. You may be eligible to get huge discounts and offers since you are a valid customer for the company. It is always a good choice to have professional liability insurance as nobody knew what would happen in the next moment.

If you are looking for more information then feel free to visit Life Insurance Questions and Auto Liability Insurance.

Article Source: http://EzineArticles.com/?expert=Jitesh_Arora

Top 10 Business Insurance FAQs
By David Ollenberger

Business Insurance has been developed to provide essential cover in the event of claims arising from loss or damage to property and injury to persons in the course of carrying out your business activities. For businesses with a professional service, protection from claims arising from professional errors and omissions is very important. If you value your business and livelihood then you should have effective insurance cover in place. Claims against your Business could potentially result in not just substantial cost to the company but to you personally - even Director's of Limited companies are at risk - which is why Directors and Officers liability cover is also becoming crucial.

Here are the 10 ten most Frequently Asked Questions about business insurance:

DO I NEED TO TELL THE INSURERS EVERYTHING ABOUT MY BUSINESS? Your Insurers need to be aware of all the facets of your business in order to asses the risk and meet the needs and demands of your insurance requirements to ensure you are fully protected. Failure to advise your insurers of a material fact could invalidate your cover!
WHY DO I HAVE TO REVEAL MY WAGE ROLE? Your Insurers need this information assess the size of your company and the potential liability you may have to other parties.
DO I HAVE TO TAKE OUT LANDLORD INSURANCE TO INSURE MY LANDLORDS PROPERTY? This depends on the terms of your lease. If the landlord assumes responsibility for the insurance of the buildings you occupy then you do not need to insure these yourself. However you should ascertain exactly what the lease specifies. If for example your lease makes you responsible for the insurance of existing fixtures and fittings, shop fronts, etc... then you must insure these. You will no doubt decorate and improve the risk with your own fittings. These must also be insured as the landlord will not insure them.
DO I REALLY NEED PUBLIC LIABILITY INSURANCE In this litigious age every business needs to protect itself from claims from third parties for damage to the their property or for injury. The cover will protect the business from claims dealing with the legal costs and if necessary paying the damages awarded. Even defending a no win - no fee attempted claim, costs can run into thousands of pounds, which this cover will provide for.
I PUT UP DISCLAIMER SIGNS AND HAVE PEOPLE SIGN DISCLAIMERS SO DO I NEED LIABILITY INSURANCE? Unfortunately yes. Signs may dissuade some claims but in law they have very little sway. The person injured may be blind or illiterate and cannot read the signs. They may well still attempt a claim even if they have signed a waiver on the basis that they did not know what they were signing and this claim would need to be defended.
I ONLY EMPLOY MY FAMILY DO I HAVE TO HAVE EMPLOYERS LIABILITY INSURANCE? The Employers Liability Act 1969 does exempt family members from cover but if you trade as a limited company then you are legally required to have cover as per the Act.
I DO NOT HAVE MUCH STOCK SO CAN I ONLY INSURE MY LIABILITIES? Yes of course, but in protecting your business and continuing to trade you must consider the other aspects of cover that most business insurances provide. Business interruption (loss of profits), money cover, damage to fixtures and fittings, leased equipment, etc... Under the terms of most leases you are liable for these.
I SELL PRODUCTS TO THE PUBLIC, IF THEY CAUSE INJURY DUE TO SOME DEFECT BEYOND MY CONTROL AM I INSURED? Public Liability policies can include liability arising from products supplied.
WILL MY PUBLIC LIABILITY POLICY COVER CLAIMS AGAINST ME FOR ERRORS AND OMISSIONS OR DEFECTIVE WORKMANSHIP? A public liability policy will only cover injury to the public or damage to their property caused by negligent acts. Errors or Omissions such as wrongful advice is protected by professional indemnity insurance. With regard to defective workmanship, a public liability policy is not a guarantee that you know how to carry out your trade so defective workmanship is excluded.
WHY DOES MY BUSINESS POLICY RESTRICT THEFT COVER TO THEFT BY FORCIBLE AND OR VIOLENT MEANS? As you can imagine, if the public are allowed unlimited access to business premises such as shops, offices, hotels, etc. then theft is very easy for the opportunist thief. Some restrictions have to be imposed hence the requirement for forcible entry.

For all your Landlord Insurance and Liability Insurance needs contact Arthur Savage Insurance

Article Source: http://EzineArticles.com/?expert=David_Ollenberger

Consultants Need to Have Professional Indemnity Insurance
By Patrick T Martin

Consultants need to have insurance for their businesses. They do however need insurance that is different from other types of business. In the UK Consultants often need Professional Indemnity Insurance which covers them if the advice they give causes a financial loss to any of their clients. If a client then decides to make a claim, they will be covered for the costs of that claim.

In the current economic climate many people have lost their jobs but are experts in their field, so have chosen to start up as consultants to utilise the advice they can give. With more people giving advice, the potential for the wrong advice to be given is larger and so Professional Indemnity Insurance becomes more important.

A business does not have to be a consultancy to need Professional Indemnity Insurance. Any business that gives advice to it's customers could potentially need Professional Indemnity Insurance cover. Even if offering advice is not the main part of the business, this type of insurance will be needed.

Businesses can make sure that they get the best value Professional Indemnity Insurance by comparing the cost of different insurance providers online. By comparing the cost of quotes and the type of policies side by side businesses can decide on the right insurance for them and make a more informed decision than they might otherwise.

It is important that a business buys insurance cover that is right for them. It can be very easy to choose cover that is too much for what a company might actually need. Some companies are smaller than others, some operate in riskier situations. Generally no two companies are the same and so they often shouldn't have the same insurance cover.

With Simply Business you can compare quotes from leading Professional Indemnity Insurance providers in the UK and buy your insurance online quickly and easily.

Article Source: http://EzineArticles.com/?expert=Patrick_T_Martin

Lowering Errors and Omissions Risk
By George G Williams

Errors and Omissions Risk Management Approches

Buying errors and omissions insurance is an important part of risk management. But risk management goes beyond the purchase of Errors and Omissions insurance. Consider the following low-cost, or no cost strategies to reduce your exposure to errors and omissions, and win more customer respect in the process:

Allow customers to complain directly and immediately. Talking to frustrated or angry customers - whether over an 800 number, email, or instant messenger -- cuts down the likelihood of a lawsuit and helps their satisfaction with your company.
Be aware of contractually-based risk management basics. Some E&O lawsuits start from false promises over promotion or misleading information provided by the company and or its representatives. Be careful in generating contracts for customers. Don't make absolute promises and never guarantee any factor, such as a delivery date, or other factors over which you lack complete control.
Help keep down errors and omissions in your business processes by pulling out inefficiencies in your operations. Be careful when running your business on paper records and verbal commitments. Scan all documents into a computer, record all contracts and pay the utmost attention to detail. This will not only help your business but also cut down on the risk of an E&O lawsuit.
Make sure you keep extensive records. Phone call logs should be utilized, meeting dates and times as well as documentation.
Train your staff.. There should be documentation of what was covered in training.
Have a posted rules of conduct which should deal with honesty.

Having Errors and Omissions insurance is not a right to neglect your business tactics. By following the tenets above will help to prevent certain kinds of problems before they happen. More errors and omissions insurance information can be found at www.eandoinsuranceofamerica.com

Article Source: http://EzineArticles.com/?expert=George_G_Williams

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-08-05T13:33:00.000-07:00

Speed Your Business Insurance Application Process Along With These Handy Tips
By James Cochran

Article Source: http://EzineArticles.com/?expert=James_Cochran

Product Liability vs Professional Indemnity Which is Better for You?
By Maria Dawson and Garret Akerson

A. Product Liability

B. Professional Indemnity

In light of today's increasingly litigious society, Professional Indemnity Insurance provides important protection for the professional assured.

C. Applicability of Professional Indemnity Coverage

In discussing the applicability of Professional Indemnity coverage, certain basics should be kept in mind.

Secondly, while coverage attaches from the beginning of the design phase of the project, a claim will not be until after delivery of the product and the product has left the premises of the assured.

Coverage for liability which occurs in the assureds' workplace must be found elsewhere, such as the General Liability, Builder's or Contractor's All Risk or Protection and Indemnity policies.

Fourthly, any inadvertent, non-intentional breach of a patent or copyright infringement is also covered under this policy.

Article Source: http://EzineArticles.com/?expert=Maria_Dawson

Professional Liability Insurance For Service Businesses
By Caressa Waechter

Article Source: http://EzineArticles.com/?expert=Caressa_Waechter

Get Liability Insurance For Small Business
By Ricky Lim

Liability insurance for small business is a necessity in today's society. This kind of insurance protects small business from lawsuits involving any bodily injuries that took place within the premises of the business to customers, vendors, visitors, or employees and injuries sustained that were the results of actions or negligence of the business's employees.

It protects the business owner from property damage that are caused by the employees as well. There are four kinds of insurance. The first one is the General Liability Insurance.

Out of the four, this is the most common. In many cases, it has been part of the large liability insurance for small business package. It also provides the coverage for the occurrences that have been mentioned in the previous paragraph.

The coverage include slander, infringement, liber, and intellectual property.

The second kind of insurance for small business is the Professional Liability Insurance. This is very important to the service industry.

It protects the professionals from claims that were personally made against them for the mistakes or errors that they apparently made while they were performing their duties.

Examples of such insurance involve malpractice insurance that are for doctors or errors and omissions insurance for financial advisors, accountants, building contractors, and attorneys.

The third kind is strongly recommended if it is a manufacturing business. This is the Product Liability Insurance. The coverage protects the business owner from items that have been manufactured or developed by the company that was responsible for an injury, death, or accident of a person.

The clients of this particular insurance range from car manufacturers to toy manufacturers.

The fourth kind and the newest one insures the business against the employer's action. This increase in lawsuits that are for sexual harassment, discrimination, and wrongful termination.

This kind of insurance protects the employer against the claims that are made by business associates, employees, or former employees.

It is only practical for owners of small businesses to get their own insurance. One would never know what could happen to their business.

At least with liability insurance for small business, they can easily protect themselves from whatever law suit that come their way. It's better to have it and not need it, than need it and not have it.

Look at liability insurance as an umbrella which you can just pull out just in case it rains.

Discover how to get cheap liability insurance for small insurance. Learn more about small business liability insurance at my site.

Article Source: http://EzineArticles.com/?expert=Ricky_Lim

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-08-05T13:30:00.000-07:00

Errors and Omissions Insurance is For Businesses That Provide a Service
By Caressa Waechter

In our current society, numerous company owners have errors and omissions (E&O) insurance. This is fitting for any person who provides guidance, makes well-informed advices, creates answers or stands for other people's needs like inspectors, telecommunications carriers, advertisement copywriters, placement services, web page designers, software developers, consultants and teachers.

If you are in a service business, this type of coverage is needed. Your client may complain that the service which he availed from you made him spend a certain amount of money or resulted to a particular damage.

Companies commit errors every once in a while and it is unavoidable. This is where E&O insurance comes in. It covers both your mistakes and the ones made by your freelance outworkers and employees. In addition, you could be free from any humiliation, customers backing off and ruined reputation.

An official agreement with the customer can reduce your liability, but the major price you pay when sued for something covered by these policies is the legal defense which is required to confirm innocence or liability. These policies are created to protect most of these costs and eventually the closing decision if the company owner failed to succeed in the defense.

It is normally suggested that E&O coverage be the basis of any insurance portfolio of businesses. Typically, it is sensible to buy the plan before the launch of a product or when you already have clients.

Professionals who require this type of plan include engineers, lawyers, doctors, architects, accountants and others. If your business offers and charges for services to customers, you have exposure to errors & omissions. You may want take into account the repercussions of a service not done appropriately or in a timely manner, and it causes your client to lose money or ruins their reputation.

Errors and omissions rates very much differ as it depends on the business type, place and experience in claims. An insurance firm considered as being aggressive on insurance or property coverage may be an opposite or incapable of providing this type of coverage since it isn't their specialty.

As a business that provides a service to your customers, you probably need errors and omissions insurance. Also known as professional liability insurance, this coverage should be considered mandatory for certain business types.

Article Source: http://EzineArticles.com/?expert=Caressa_Waechter

Beware of Errors and Omissions Insurance
By George G Williams

If you are providing an insurance service you must consider the risk of being brought into court for a real, or not so real, lawsuit. Many professionals require specific E and O insurance geared to their particular industry. It all depends upon upon the industry, the state, size and of course, the history of the company. Any number of professional liability options are available. The company you select should maintain strong relationships with many carriers that can custom tailor a program for your organization. Brokers who maintain licenses and have relationships with brokers in all 50 states is your best bet.

Policies are issued on a Miscellaneous Professional Liability (MPL) form, which are often used by many E and Omissions companies. Often changes are required on these forms. Without changes, many policies are just plain inadequate to cover the typical risks of operating a business. Many times one will see excluded medical management, accounting or actuarial services, merger and acquisition services. For many business that may be sufficient, however, for a medical group to have medical management excluded from their policy would provide no coverage for their actual day to day activities..! Until there Gaps like this are unknown until there is a claim. Policies ust be specific to each company, and offer a "gapless" solution for each client. Example - An accounting firm. After taking a look at their E & O policy, it was determined that their policy specifically excluded accounting services. What?!? This sort of gap happens more times than one would like to see. It's buyer beware..!

George Williams

http://www.eandoinsuranceofamerica.com

Article Source: http://EzineArticles.com/?expert=George_G_Williams

Errors and Omissions Insurance - A Vital Component in Protecting Against the Unexpected
By James Cochran

Who's at risk?

Ensuring the policy meets the company's needs

* Coverage should include legal defense costs.

* 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

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

Article Source: http://EzineArticles.com/?expert=James_Cochran

Errors & Omissions Insurance for Graphic Designers: The Increasing Importance of This Coverage
By Ryan Mitchell

Errors & Omissions liability claims alleging the failure to render professional services against graphic design firms are escalating. E&O liability provides coverage for claims with or without merit.

Ryan Mitchell is a Professional Insurance Broker in Toronto, Canada. To learn more, please visit http://www.mitchellsandham.com

Article Source: http://EzineArticles.com/?expert=Ryan_Mitchell

Professional Liability Insurance For Therapists
By Michael Maitland

Do I have enough coverage?

Am I covered when I am off-duty?

Is my coverage shared with others?

Does your employer-provided insurance include license protection?

Richey v. Turocy

Reduce Your Risk with this Liability Checklist

Know your job

Stay up-to-date.

Maintain your professionalism.

Document, document, document.

Protect patient confidentiality.

Article Source: http://EzineArticles.com/?expert=Michael_Maitland

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

All About Professional Errors and Omissions Insurance Information By Insurance Experts

2009-08-05T13:22:00.000-07:00

Errors and Omission Insurance Coverage
By Caressa Waechter

Article Source: http://EzineArticles.com/?expert=Caressa_Waechter

Management Consultant Insurance and Liability Protection
By James Cochran

If you're in the management consulting business, you probably have clients that require you to carry some level of insurance. Maybe you run a small firm with a few employees, or maybe you're an independent freelancer. Either way, you might wonder if you'll ever actually use all that coverage.

If your client says it's necessary, you will need to obtain professional liability insurance if you want to secure the job. The good news is that getting the required insurance coverage can be both affordable and good for your business.

Typically, companies want their management consultants to carry some or all of the following three types of coverage:

General liability insurance

General liability insurance covers businesses in the event of an on-site injury or damage to company property. Management consultants often wonder whether they really need this type of coverage. After all, what's the likelihood that someone giving a presentation or attending a meeting will damage a client's property or hurt anyone? Is there really a risk of liability for management consultants?

The fact is, client companies often require all of their vendors who may come on-site - from electricians to delivery personnel to management consultants - to prove they carry general liability insurance. In some cases, the mandate comes from the client's investors, who seek to reduce the company's risk of financial losses from lawsuits. And of course, accidents do happen, so there is as much risk of liability for management consultants as for any other office visitor.

If you have your own management consulting office, general liability insurance will protect you in the event of an accident or injury on the premises. If a client visits your office on a rainy day and slips and falls in the entryway, your general liability insurance will cover any related medical or legal costs - and possibly save your client relationship. And that's one invaluable reason why insurance for management consultants is good for your business.

Professional liability insurance

Professional liability insurance, also known as errors and omissions or E&O insurance, is essentially malpractice insurance for management consultants. It covers you for errors and omissions that you or your employees make on the job. There's a simple reason that clients require E&O insurance for management consultants: They know that people make mistakes.

Your client's greatest risk in bringing you in as a management consultant is liability -- the fact that your mistakes could spark a lawsuit or financial loss. For example, let's say you have revamped a company's budgeting process, but made a critical miscalculation in the new system that results in big problems when the budget is reconciled with actual expenses later in the year. Your client can claim that any resulting financial loss is due to a management consultant error or omission, and will expect you to compensate the company.

Having professional liability or E&O insurance for management consultants is a good idea. Without it, you could end up paying exorbitant legal defense costs if your client makes a claim against you. A misunderstanding is often all it takes to be served with a lawsuit. Once a client alleges that you were negligent and communication breaks down, your legal expenses start to grow. E&O insurance gives you peace of mind that should things go wrong, you're covered.

Workers' compensation insurance

Some states require workers' compensation insurance, while others do not. If your client is based in a state that requires it, your management consulting firm will likely be asked to carry it, even if your own home state does not require it.

That's because, in some states, if you're injured while on the job, your client must cover you with its own workers' compensation policy. Also, in some states, your client's insurance carrier will require the client to cover all contractors that don't have their own proof of coverage. Both scenarios increase your clients' premiums, so they often require workers' comp insurance of management consultants as well as other contractors.

Workers' compensation insurance covers medical expenses as well as disability and compensation in the event of on-the-job injuries. If you're a solo practitioner with your own health insurance, workers' compensation insurance may not be necessary - but your client may still require it if you want to get the work.

If your management consulting business has employees, protecting them with workers' compensation insurance just makes good business sense. From carpal tunnel syndrome to a slippery bathroom floor, even the smallest on-the-job hazards could result in an injury that could take them off the job. Workers' compensation insurance ensures that your employees are taken care of and saves your company from paying for their ongoing care.

About the Author:
In business for over a decade, James Cochran, founder of Business Insurance Now, an insurance company specializing in professional liability insurance, knows the implications and responsibilities of business ownership inside and out. Business Insurance Now offers comprehensive business coverage, including management consultant insurance and more.

Article Source: http://EzineArticles.com/?expert=James_Cochran

Why Should Accountants and Bookkeepers Get Errors and Omissions Insurance?
By James Cochran

Insurance for Tax Preparers

Bookkeepers Require Coverage Too!

Article Source: http://EzineArticles.com/?expert=James_Cochran

E&O Insurance For Your Small Business
By David W Judge

For more information and to receive an online instant quote for your business go to http://www.QuoteItNow.com

Article Source: http://EzineArticles.com/?expert=David_W_Judge

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.

A professional with errors and omissions coverage is protective of their respectable business name and willing to stand behind their reputation.

In the unlikely event an unavoidable error or omission occurs, you can have confidence that your professional server's insurance coverage will safeguard you.

Article Source: http://EzineArticles.com/?expert=Kathleen_Albright

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top