You know the important and sensitive work your legal practice handles every day. Furthermore, you know your clients expect you to do your job correctly. So, if you make mistakes, the clients might therefore hold the practice responsible. That’s a time when Errors & omissions insurance, or E&O coverage, might come in handy. What’s this coverage? When will it apply in your business?
E&O coverage is a big chunk of the liability insurance your office will need. However, it is not the only necessary protection. Take some time to consider when you can’t apply this coverage, and when you need to look elsewhere.
When to Use E&O Insurance
Errors & omissions insurance is commercial liability coverage. It applies to the costs of damage that you cause to other parties in the course of business. However, it is a specific type of coverage. You might think of it as applying less to physical damage, and more to professional mistakes.
Law offices will need this coverage because of the nature of their services. Lawyers handle important deeds and orders that could impact others' lives. They also dispense advice which others trust and use to make important decisions. So, if you make a mistake during your duties, the victims might sustain financial losses and other personal challenges. They thus might expect you to repay them.
It’s cases like these where E&O insurance can come in handy. It applies to professional mistakes and financial damage that a service provider causes because of their services. It also often applies to inappropriate professional advice that the insured practice provides. Given that you offer such services in your office, you’ll need this coverage.
It Won’t Apply to Everything
Keep in mind, errors & omissions insurance is a niche, targeted policy. It won’t apply to other liabilities within your practice. These are often numerous. They might include things like.
- Bodily injuries customers sustain by visiting your property.
- Employee injuries sustained in their course of duties.
- Stolen personal data.
- Property damage to third parties.
- Automobile accidents.
- Illegal and intentional acts.
Therefore, you’ll need to support your E&O coverage with other coverage. This might include:
- Property damage liability insurance
- Bodily injury liability coverage
- Cyber liability insurance
- Commercial auto insurance
- Workers' compensation
- Directors & officers (D&O) coverage
- Employment practices liability (EPLI) coverage
Consider E&O coverage only part of an expansive liability insurance portfolio. Your law office will need more than one policy in most cases. You can work with your agent at 877-396-2300 to coordinate the various aspects of the coverage. Talk to them about the precise type and amount of liability coverage you need.