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

Today optometrists, real estate agents, physicians assistants and stock brokers are being taken to court for their negligence. Not having an insurance policy that can protect you against legal action can mean that your career is over and that your house is auctioned to pay the person suing you.

Being negligent can start with something small that over time into something catastrophic. You might very easily discard a page from a client’s file or shred the wrong document. This might cause you to give a client the wrong advice or miss a deadline.

No professional can make the correct decision every single time. Having a policy that covers you for the human error that we are all subject to can save your career.

What is errors and omissions insurance? It is similar to a doctor’s malpractice insurance. It protects you the professional when a client files a legal action against you and alleges that made a professional mistake that hurt them.

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

What is not covered by errors & omissions? These insurance plans are not designed to cover anyone for criminal acts. They will not cover a professional for acts that are dishonest or fraudulent.

Neither general liability insurance nor professional liability insurance is designed to cover dishonest or fraudulent acts. They are designed to protect anyone from negligence, errors or omissions.

An honest mistake shouldn’t force you to end your career or cause you to lose your life savings. errors and omissions coverage is designed to cover inadvertent mistakes and let you to continue on with your life and career.

An errors and omissions policy is, however, likely to cover you if you are taken to court due to a mistake you have made in your business or profession that is unintentional. Just as important is the fact an errors and omissions policy will cover you when you haven’t made an omission or error, but someone is still taking you to court.

Each generation tends go get more likely to take professionals to court. Professionals are being taken to court now at a rate that was unthinkable a decade ago. If you think that you are in a profession that makes being sued a possibility, be careful. You just might be correct.

There doesn’t appear to be any limits to what a professional can be sued for. Sometimes the professional has made a mistake. Sometimes the suits have no basis, but being sued can be costly whether or not you have any reason to believe that you have done something wrong.

If you are taken to court, you will probably find that your E and O carrier will pay all of your legal defense. The lawyer’s bills will not be deducted from the amount your company might pay to the party suing you. This can mean a savings of thousands of dollars. Being sued can be costly even if you are not guilty of negligence.

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

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

Author Bio: You can find more information errors & omissions insurance on the author, Alston J. Balkcom’s website. He is a veteran insurance agent providing health and dental care insurance to residents of his home state.

Category: Finances
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