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Errors and Omissions Insurance

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 multiple‑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. Hindsight 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 Hindsight 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.

 

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.

Our Locations

Hindsight Insurance Services

2349 Willow Pass Rd.
Concord, CA 94520
Main office: 925-523-7480
Toll free: 800-264-4637

Hindsight Insurance Services Novato

1615 Hill Road, STE H
Novato, CA 94947
Main office: 415-300-2436

Our Providers

Testimonials

Where to begin? I've used Hindsight for our complete suite of business insurance needs for approximately 20 years now. As a business owner, I live by the old fashioned credo of taking care of the customer -- and so do the folks at Hindsight. As a Hindsight client I feel we have a relationship based on trust and good service. I can't recommend them highly enough.
Rick Weldon -PR Motorsports
For more than 25 years we have relied on Mark Hinds at Hindsight Insurance Services for our workers compensation, business and property insurance needs. We have appreciated the personal and detailed attention to our concerns. Don Worth, President The Model Garage, Inc. Berkeley Ca
Don Worth
We have been customers of Hindsight Insurance Services for many years. I cannot say enough about how incredible they are. They get us the best rates and whenever I have a question they go above and beyond to answer my questions and never make me feel like I am taking to much of their time. They have always been very nice and very helpful. I highly recommend them! - J. Schumacker, Moraga Motors, Inc.
J. Schumaker