As our world becomes more and more litigious, it’s important to evaluate your client’s risks realistically. If your client provides a service of any kind, especially as independent contractors, it’s likely that they could be at risk of an Errors & Omissions (E&O) claim against them. Even clients who fully abide by all laws, rules, and regulations may find themselves facing expensive defense costs and legal fees when defending their small business from a claim. So who is at risk and who needs errors and omissions insurance?
First, it’s important to understand how E&O coverage protects your business, why it’s a necessity, and what protections it provides. Errors & Omissions coverage is a “form of professional liability insurance designated to protect employees and employers against clients’ claims of negligence or inadequate work.” This coverage generally covers potential financial loss through legal costs associated with defending and/or settling a claim, up to the specified policy limit.
Eight Professional Industries That Need E&O Insurance
Are your clients at risk of an E&O claim? Who needs errors and omissions insurance? If they fall into any of the following business classifications, contact us for an E&O quote.
- Allied Healthcare (AHC) E&O
This insurance coverage is often referred to as Miscellaneous Medical as it’s a mix of medical-related risks, but doesn’t fall under a Medical Malpractice policy. If your clients fit under one of these classes of business, they should carry an AHC E&O policy:
- Adult daycare centers
- Drug rehab centers
- Acupuncturists
- Testing laboratories
- Ambulance services
- Medical staffing agencies
- Chiropractors
- Nursing
- Counselors
- Optometrists
- Pharmacies
- Dialysis centers
- Occupational therapists
- Physical therapists
- Speech therapists
- Physical training
- Holistic medical services
- Psychologists
- Home health agencies
- Sleep labs
- Hospice care services
- Spas
- Massage therapists
The coverage necessary for your clients will depend on their business’ individual exposures.
- Architects & Engineers (A&E) E&O
Both architects and engineers require a policy that can protect their organization, no matter the size of their project. Even small projects can result in large, complicated claims that involve multiple parties.The following business classes should purchase an A&E E&O insurance policy:- Licensed architects
- Licensed engineers
- Construction and project management
- General contractors
- Land surveyors
With proper protection, your clients will be able to maintain focus on their work.
- Cyber & Privacy Liability
Does your client’s business or organization utilize technology? Today, the answer is almost always “yes.” This leaves many businesses vulnerable to privacy exposure. With laws and regulations constantly changing, it can be difficult to determine your client’s true exposure. A Cyber & Privacy Liability policy can help make sure your client is protected in the event of an imminent cyber attack. - Financial Institutions/Financial Services
These institutions, such as securities brokers and dealers, face some of the most complex exposures and there are a limited number of markets willing to entertain these risks. ProWriters has relationships with the carriers that can manage this exposure and have developed expertise in this class of business, which may include:
- Insurance companies
- Banks
- Investment advisors
- Fund managers
- Securities brokers
- Financial advisors
- Insurance brokers
- Healthcare
As organizations within the healthcare industry face different regulations than a typical business, their E&O coverage has to cater to their specific needs. If your clients fall under the following classes of business, call us for E&O coverage:- Hospitals
- Physicians groups
- Biotechnology companies
- Medical research companies
- MultiMedia
This product was developed for traditional publishers and broadcasters, including:- Broadcaster
- Publisher
- Magazine
- Newspaper
- Advertising agency
- Website owner with a lot of content
This type of insurance product provides coverage for intellectual property (IP) infringement, breach of an IP license, defamation, and negligent publication.
- Technology
This product provides coverage to technology companies for any claim of negligence in providing software or services. This coverage is a necessity as these claims are very frequent. Broad coverage is needed to respond to the wide range of claims that may be brought against them. Businesses that would benefit from this type of coverage include:- Contract software developers
- Software licensing
- IT consulting
- Website developers
- Hosting companies
… and more. If you think your client may be at risk, contact us.
- Miscellaneous E&O or Miscellaneous Professional Liability (MPL)
This “catch-all” coverage is for all other professional risks that don’t fall into a specific category. Because these clients require tailored coverage, a good underwriter and carrier who can fully understand their risks is a necessity. This may include:- Management consultant to trustee
- Staffing agent to collection agent
- Printer to freight forwarder
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ProWriters Is Here to Help
As your client’s insurance agent, it is your responsibility to help prepare your clients for serious E&O related risks, which ultimately protects their livelihood. ProWriters is here to help make your job even easier with our FREE downloadable resources that will help you find the best possible coverage and protection for your clients.
Check out our latest addition, The Six-Step Guide to Becoming Your Clients’ Cyber Expert, for more information on how to protect your clients from ever-evolving cyber threats.
To find your clients the best possible E&O insurance, contact us today or call us at 484-321-2335 to speak with an expert.
