Errors and Omissions / Professional Coverage

What is it?

Errors and Omissions Insurance covers two very big risks:

  • Financial loss of a third party arising from failure of the insured’s product to perform as intended or expected.
  • Financial loss of a third party arising from an act, error, or omission committed in the course of the policy-holder’s performance of services for another.

Essentially, whenever you make a claim about your product or services performing a certain way and that claim is unfounded in a customer’s eyes, Errors and Omissions Insurance protects you from the subsequent lawsuit from that customer. Keep in mind that simply offering a product/service to a third party automatically creates expectations without anything more.

An Errors and Omissions Insurance
policy will generally cover any judgments against the company, settlements, and costs to defend against E&O-based lawsuits.

Why do I need it?

You may be extremely confident that your product works or your services are performed with top-notch customer service, and your confidence may be completely warranted. But you still need Errors and Omissions insurance.

Learn more about the benefits of choosing Small Biz Insure Memphis

Small Biz Insure Memphis offers several types of insurance coverage at competitive rates. For more information call us at 1-877-853-2567 or get an Online Quote Now!

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