HUB California Professional Liability/E&O Insurance

Why You Need Errors & Omissions Insurance

Regardless of what kind of business you own, customers can claim that something you did on their behalf was done incorrectly, and that this error cost them money or caused them harm in some way.

What Errors & Omissions Insurance Is

In the litigious world we live in today, many business owners protect themselves with errors and omissions insurance (E&O). This type of insurance may be appropriate for anyone who gives advice, makes educated recommendations, designs solutions or represents the needs of others, such as teachers, consultants, software developers, ad copywriters, Web page designers, placement services, telecommunication carriers or inspectors.

How Errors & Omissions Insurance Works

Although formalizing a contract with your clients can help limit your liability, the big expense in an errors and omissions claim is the legal defense needed to prove liability or innocence. Errors & Omissions policies are designed to cover many of these defense costs and ultimately the final judgment if the business owner does not win the case.

What Technology Errors and Omissions Insurance is

Technology Errors and Omissions Liability protects your company from claims if your client holds you responsible for programming errors, software performance, or the failure of your work to perform as promised in your contract. Coverage includes legal defense costs - no matter how baseless the allegations. Errors and Omissions insurance will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy.

Commercial General Liability does NOT provide coverage for programming errors, contract performance disputes or any other Professional Liability issues. IT consultants and companies who have General Liability without Professional Liability (Errors or Omissions) coverage are taking a serious risk. It’s like a doctor practicing medicine without Malpractice insurance.

Coverage extends to both W2 employees and 1099 subcontractors, and is typically worldwide in scope.