Most businesses and homeowners get insurance to be protected from disasters. If you are handling an insurance agency, you want to ensure that you are protected from disasters such as fires and floods. But, it is vital to keep in mind the other issues that can affect your business. These issues might not be obviously disastrous. However, the financial influence on your business can be intense when an employee makes a severe mistake.  

 

If you want protection against these mistakes, you will need an Errors and Omissions Insurance policy from 1st State Insurance. However, before you proceed, there are things you have to consider. 

What Does It Cover? 

Errors and Omissions insurance enables you to offer coverage for your business if ever an employee omission or error leads to perceived or actual financial or other damage to a customer.  

For example, the customer might ask for compensation if your employee overlooks to check off every box on the form and then the customer experiences a loss that can be covered but isn’t. Though you might have great quality control practices in places, E and O still happen. To protect you against these mistakes, Errors and Omissions Insurance can help. 

It’s an Investment 

As you think about whether to get E and O Insurance and what type of coverage limit to get, you should understand that your E and O insurance is an investment. It is for the future of your business. Having this type of insurance enables your business to keep on going even in the face of a customer lawsuit that may be extremely difficult for you.  

Rather than looking at the cost of an E and O insurance, think about how it’s a vital investment in your security and corporate image.  

Think About Upgrading Your Training 

Think about how you may upgrade your employee training program if you are searching for fewer E and O claims in the future and lower E and O Insurance cost. Better employee training around data accuracy and protection will help your business do better at handling the accounts of your customers. Also, it will help lower the cost of your E and O insurance.  

Understand What Your Insurance Doesn’t Cover 

Simply because you bought E and O insurance doesn’t mean that you’re completely free of worry from errors and omissions. According to providers, E and O insurance might or might not cover temporary employees, claims in different jurisdictions, and claims coming from work done before the policy were enforced. Think about how you’ll handle the risk if you’ve got a lot of temporary employees.  

Cost for the Insurance 

To make sure you get the best deal, you have to shop around. It’s just like buying any type of insurance. E and O insurance not only varies on the provider; it also varies on other aspects. This includes coverage limits, claims history, interaction with customers, employee training programs, the total number of employees, and your revenue. Whenever you’re shopping for E and O insurance, make sure you ask the provider how you can lower the cost.