Errors and Omissions Insurance in Overland Park KS & Kansas City MO
Errors and omissions refer to mistakes, negligence, or discrepancies in a business’s accounting records, which can possibly be interpreted as fraud and lead to legal action. Business owners and executives have several legal and financial responsibilities that accompany their roles, and if they fail to fulfill these responsibilities by inaccurately reporting income, errors and omissions insurance will reimburse a business for problems arising from these fiduciary oversights.
As a business owner, you know how important it is to live up to your promises. Consumer trust is a key part of earning repeat business, which in turn helps to create a stronger, healthier, and more profitable company.
Errors and omissions claims have been trending higher in recent years, with multipl million dollar lawsuits being filed more frequently than ever before. Accordingly, most businesses need to have appropriate coverage amounts to be sure they're protected if a large claim is filed.
What E&O Insurance Covers
Policies can vary, but most forms of errors and omissions insurance cover the following. Note that some industries don't need all of the coverage mentioned below, while others may need additional coverage because of the nature of their operations. Affordable Insurance Services agents will help you determine which coverages are best for you.
- Claims and Damages: These are one of the major sources of potential loss that your company faces. E&O protection on claims can reimburse you for any payouts you may have to make as a result of such claims being filed.
- Defense Costs: Whether or not you win a case, your attorney is going to expect payment. E&O insurance can reimburse you for their fees, allowing you to hire professional support without worrying that it will be too expensive for you to afford.
- Employees, Temporary Staff, and Independent Contractors: You may be liable for the actions that anyone associated with your business takes—whether or not they're an employee. This part of the policy protects you if they make a mistake.
- Negligence: Often considered one of the most important parts of E&O coverage, negligence coverage can reimburse you for problems like making a mistake while giving advice or failing to complete a job. Whatever the cause of the problem, ensuring you're covered will help protect your business if something goes wrong.
Errors and omissions policies payouts vary among companies depending on the possible severity of financial mishaps. If you're not sure how much of a cap your business should have in each category, call one of Affordable Insurance Services agents today and ask them for more information. You may need to increase your policy cap as your business grows, and we can help you decide when it's time to raise the limit.
E & O Protection in Overland Park, Kansas
Errors & Omissions (E&O) insurance is a form of liability coverage that protects your business from claims of professional negligence. Considering the fact that these cases can be lengthy, the potential cost to the business can sometimes be catastrophic.
Even suits with no merit that are filed can damage your business if you're not protected. At Affordable Insurance Services, we don't leave you to fend for yourself. We'll help you evaluate your E & O protection on an ongoing basis to make sure you have the right policy at the right price for your particular business needs.
Some of the categories or professions that typically protect themselves from Kansas E & O risks are:
- Financial Advisors
- Real Estate Appraisers
- Brokers & Agents (varied)
Contact us today if you'd like a review or quote on your Errors & Omissions (E&O) insurance to make sure you're covered.
1. Oxford Reference, s.v. “errors and omissions,” www.oxfordreference.com/view/10.1093/oi/authority.20110803095756997?rskey=tDNztO&result=1
2. "Why Consumer Trust Is the Key to Repeat Business." The Wise Marketer. January 2005. Accessed April 18, 2016. http://www.thewisemarketer.com/features/read.asp?id=54.
3. "Claims Trends." Insurance Journal News. November 03, 2014. Accessed April 18, 2016. http://www.insurancejournal.com/magazines/features/2014/11/03/345153.htm.