Errors and Omissions is an essential insurance policy. It keeps your business protected in the event of inadequate work or negligent actions. K. L. Owens & Associates urges you to know exactly what your E&O policy does and does not cover, so that you are not caught unawares when a claim comes in that is not covered.
Typical Errors and Omissions Coverage
Errors and Omissions policies usually cover the actual business entity and the serving Officers, Directors, and Partners. Employees and former employees are also covered, but this is where consistency among E&O policies turns into a grey area.
Grey Areas of E&O
While current and former employees are covered, if your company uses leased or temporary workers, your policy may not cover them. And, while the policy will cover Officers, it may leave you liable for errors caused by stockholders. One of the most inconsistent areas in E&O coverage is concerning Independent Contractors. While some carriers cover them, others determine that the contractors be listed by name in the Who is an Insured section. If you are looking to switch E&O coverage, make sure that the Who is an Insured section is one that you scrutinize. When it comes time to deal with a loss, it is better to find out who is and isn’t insured before the issue arises.
K. L. Owens and Associates and ASAP provides all of the insurance your small business needs. Give us a call today and we would be happy to help write a plan that keeps you covered in all aspects of your business.
Speak Your Mind