Errors & Omissions Quoting Service:
Advantage Commercial Policies for Consulting Agencies
As a consultant, you might already have General Liability insurance in place. Unfortunately, this type of coverage is not enough to protect you from litigation if someone were to become unsatisfied if your services. While General Liability will protect you in the case of property damage or bodily injury, it won’t protect you from the financial loss you might face from errors that you make in your work.
No consultant wants to believe that he or she has made an error. The reality is, however, that mistakes do happen. In addition, even if you are doing something that you truly believe is in the client’s best interest, something may go wrong. In this case, it is essential that you have professional liability to protect you from undergoing a great financial loss.
When you have Errors and Omissions in place, you will be protected from a number of potential mistakes. These may include…
- Failure to adhere to a set schedule
- Failure to provide the type of work as promised
- Accidental errors or omissions in your work
Each of these scenarios can result in a financial loss for your client. As a result, he or she may demand compensation from you. With E & O, the costs associated with this type of litigation is covered. In addition, this will help to pay the cost of defending your case. Therefore, even if you are not found guilty of making an error or an omission, the cost of defending your business will be covered through the policy.
When it comes to professional liability, it is important to note that there is no one standard policy for consultants. Therefore, you need to make sure the policy language offers the specific type of coverage you need for the type of services you offer. Namely, the “wrongful acts” described in the policy need to meet your specific needs.
Another benefit to having the liability in place is the fact that it also covers the cost of the defense used to fight your case. Therefore, if you are found guilty of being negligent, your defense cost and the amount you are sued for are both covered.
It is important to note that this type only covers those claims that are brought against you while the policy is in place. Therefore, if you allow your policy to lapse, you might put yourself in jeopardy because a client can bring a lawsuit against you well after your contract has ended.
When looking for a company that you will work with for your professional liability coverage, you need to keep several things in mind. First of all, you want a company that will work with you to provide the specific type of coverage that a consultant needs. In addition to the terms of the policy, you need to consider other aspects as well. For example, the amount of the deductible should be taken into consideration.
When it comes to this type, the deductibles are also commonly referred to as retentions. If you want to keep your premiums low, you will want to select policies with higher deductibles. Deductibles of $5,000 to $10,000 will generally help keep the premiums at a reasonable cost.
If you are looking for a great policy that will fit your specific needs, take a moment to complete our simple online form. By completing form and answering a few simple questions, you will be able to receive information from a number of reputable companies that will be willing to help you with what you are looking for.
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