Are you unsure if you need insurance agent E&O coverage? Even for those within the industry, it can take some time to know which coverages you need to cover your business. For other new business owners, the process of figuring out the right mix of liability coverage can be even more daunting. Here’s what you need to understand about two of the more popular liability coverages.
As the name suggests, general liability provides general protection in case your business causes any harm to a third party or their property. If you become the subject of a lawsuit, your policy will cover the cost for any legal fees or other charges for which you’re found responsible. Even in instances where you may not feel at fault, general liability will be there to shield you from financial loss.
Professional Liability (E&O)
Professional liability, or errors and omissions as it’s more commonly called, is more specific in that it’s meant to cover you in case of lawsuits that arise because a client felt that they experienced loss because of an error or omission on your part. Medical practitioners, business consultants, interior designers and other professional service providers all should carry E&O coverage.
So, while insurance agent E&O coverage may not be mandated by law in your area, it’s certainly recommended along with other relevant liability coverages. More experienced professionals can also provide advice on the mix of liability coverages you should carry.