Professionals are generally expected to apply their skill and expertise correctly when hired, and they may be held accountable if they fail to. Although small errors may be resolved through basic customer service, major mistakes can result in expensive lawsuits and claims. Errors and omissions insurance helps protect Massachusetts professionals from certain lawsuits and claims that they could face if they ever failed to properly execute their duties.
Errors and omissions insurance is a specialized form of professional liability insurance. As a liability coverage, policies typically pay legal fees, judgements and settlements associated with covered claims. In most cases, they’ll start paying legal fees before a covered lawsuit is ultimately resolved.
While most Massachusetts professionals should have some form of professional liability insurance in place, E&O insurance is primarily designed for people who give advice. For example, the following professionals may be particularly well-served by this type of policy:
Some other professionals need a more specialized form of professional liability coverage. Medical providers, for example, usually get medical malpractice insurance rather than E&O insurance.
E&O insurance usually isn’t the only protection that tradespeople need, but it sometimes can play an important role in a more comprehensive insurance portfolio. Specifically, this form of liability protection may protect plumbers, electricians, carpenters, landscapers and other skilled workers when they’re giving advice to clients. Should they offer advice that proves to be wrong and be sued, an E&O policy might cover the lawsuits.
The incidents that a particular errors and omissions policy will cover are governed by that policy’s terms, conditions and exclusions. Broadly speaking, however, these policies offer protection against a wide range of incidents. A few examples of incidents that an appropriately designed policy might cover include:
Landlord policies’ premiums are based on many different factors and differ from one policy to the next. A professional’s field, specific scope of work, location, chosen coverages and limits, and other items can all influence how much coverage costs.
In most cases, though, coverage is affordable despite the variance among policies’ premiums. Having coverage is nearly certainly more affordable than being sued over a covered mistake without sufficient protection in place.
For help finding errors and omissions insurance, contact the independent insurance agents at Dempsey Insurance. Our agents have helped many professionals in Massachusetts acquire coverage that’s appropriate for their situation, and we can help you find the protection you need as well. Since our agents are independent, they’re able to help you find the best available policy option regardless of what insurer is offering it.