Despite our best efforts, we all make mistakes (errors) from time to time and we all neglect to do important things that we were supposed to do (omissions). As a business owner, you can protect yourself if you’re held liable by your patients or customers in the event that a mistake you make or something that you don’t do or provide causes another person financial harm or physical or mental distress.
What E&O Insurance Covers
Error and omission insurance protects you from a different set of circumstances than your other liability policies. In the event that you are sued, E&O insurance will help fund your defense. If you lose a case and are required to pay a financial settlement, this policy helps you do that without exhausting all of your financial resources.
Who Needs It?
Some service professionals are more prone to error and omission risks than others. Particularly vulnerable are doctors, dentists, pharmacists, lawyers, accountants – even beauty salon owners and operators. A doctor misdiagnosing a patient, an accountant making an error on a customer’s tax return, a pharmacist filling a prescription with the wrong dosage, a dentist pulling the wrong tooth, a hairstylist who botches a chemical treatment … all of these scenarios would trigger professional liability or error and omission coverage.
In other cases, patients or customers accuse a business of causing harm, when no harm has been done. Still, right or wrong, the accused must pay to defend himself against frivolous lawsuits. Professional liability and error and omissions insurance can be the difference between your business going bankrupt in the process, or managing to stay afloat. The Jeff Van Matre Agency can ensure that you are well insured.