While working from home, you may have purchased a general liability insurance policy that will cover the expenses if a client experiences any injuries or damages while visiting your property.
However, a general liability insurance policy won’t cover the financial damages caused to a client. For that, you need errors & omissions insurance, also known as professional liability insurance. Here’s what you need to know about it.
What Is E&O Insurance?
Errors & omissions (E&O) insurance protects businesses against the lawsuits filed by a client for a damaged reputation or financial losses. E&O coverage is especially beneficial for professionals who offer advice, recommendations, guidance, or other related services.
Your client may end up losing a significant amount of money due to your mistake or negligence. E&O insurance can cover you from the financial expenses if a client sues you for their losses resulting from your errors and omissions.
What Does E&O Insurance Cover?
Errors & omissions insurance covers the expenses associated with defending your business against a professional negligence claim filed by a customer. This will generally include the following:
- Lawyer fees
- Administrative and court expenses
- Defense costs
- Claims and damages
How Does E&O Insurance Benefit Home Businesses?
E&O coverage is focused on the business rather than its location. Whether you make mistakes at your home-office or regular office, you need to cover the losses resulting from your errors. This is where E&O insurance can help. As most businesses offer certain services from their home, having E&O insurance is important.
These are the crucial facts you should know about E&O insurance. Do you have additional questions about your commercial insurance policy? Contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. We are ready to assist you with all your coverage needs today.