In an ever-changing world where more and more companies operate remotely, cyber attacks are a growing concern. Learn who needs technology errors and omissions insurance and how it works.
Errors and omission (E&O) insurance is essential to modern businesses; it offers invaluable protection against potential claims arising from negligence while providing professional services or advice. For more information and custom, comprehensive coverage, look to Southpoint Insurance.
Errors and omission (E&O) insurance is a form of professional liability insurance that covers a business for claims arising from mistakes or negligence. The E&O policy protects businesses that design, create, or produce goods or provide professional services against lawsuits filed due to errors made in the course of these operations
This type of coverage is essential for manufacturers, as their products have the potential to cause injury or harm if not made properly. In manufacturing, the errors could be related to a product’s design, production, testing, and packaging.
In the case of professional services, an error could arise from an incorrect legal opinion provided to a client, for example. E&O insurance helps protect businesses from legal action taken against them due to an error in their professional duties. It also covers defense costs and damages awarded to claimants resulting from negligence or poor product quality.
Southpoint Insurance is an award-winning insurance agency with high-quality products and strategies. We emphasize excellent services for all accounts, whether you operate a small business or a sprawling enterprise. Our team is dynamic, educated, and dedicated to your long-term success. As an experienced insurance company, we evaluate your organization to determine the best match for E&O coverage and help you navigate insurance costs.
The cost of errors and omissions insurance depends on several factors, such as type of business, size, number of employees, amount of coverage needed, and more. Southpoint understands all these factors when it comes to helping clients secure E&O policies at competitive rates.
We work hard to get our customers comprehensive coverage at lower premiums than other providers and succeed thanks to our extensive network of industry partners and underwriters. We get to know you on a professional and personal level to better build and deliver impactful solutions. Your well-being is at the heart of our business—our mission is to create a stress-free insurance buying experience and help you feel confident in your strategies.
The cost to you depends on a variety of factors, including:
The type of business will determine the likelihood and severity of a loss occurring. For example, a construction company is more likely to experience a loss than a consulting firm.
Larger businesses are typically more expensive to insure than smaller ones.
The number of employees also impacts premiums, with businesses with more employees paying more due to having a higher risk of E&O claims.
The amount needed will vary depending on the type of business and its activities. There may also be state laws requiring certain types and amounts of coverage for certain businesses.
The list of potential areas for error and omission is nearly endless, but the outcomes are serious. With proper insurance coverage, businesses can avoid costly payouts that threaten the viability of their business. Southpoint is an experienced coverage provider. We offer solutions for organizations in any industry and can help secure comprehensive protection. No matter your situation, our errors and omissions coverage can help you recover. Consider these examples:
A large manufacturing company had an issue with one of their products that caused injury to a customer. The customer sued, and the manufacturing company was found liable for damages due to their negligence in producing the product. Fortunately, the manufacturing company had an E&O insurance policy that covered the cost of defending themselves during the court process and any awards given to the claimant.
In another case, a small consulting firm was sued by a client who claimed they had been given incorrect advice that led to financial losses for the client. The consulting firm’s E&O policy protected them from incurring any out-of-pocket expenses associated with defending themselves in court and paying awards given to the plaintiff. The policy also provided liability coverage, which would pay for damages awarded by a court if it was determined that the consulting firm was at fault for giving incorrect advice.
At Southpoint, we understand how important it is for companies to have adequate protection from unexpected liabilities related to errors or omissions in their professional services. That’s why we work daily to provide our clients with superior customer service backed by extensive knowledge. We have a variety of robust E&O policies available through our network of industry partners.
Southpoint works closely with each client throughout the process to ensure a smooth and transparent approval process. Our team strives to help clients understand the different E&O options available and their benefits, ultimately finding the right policy for their business needs at an affordable rate. We’ve found that this hands-on approach helps clients feel more comfortable and confident when collaborating with Southpoint—something in which we take great pride.