How Much E&O Insurance Do You Need?

September 30, 2013

E&O insuranceErrors and omissions (E&O) insurance protects a company or an individual in the event that a client were to ever hold them responsible for a service that the company or individual either failed to provide or provided but didn’t deliver the results that were promised. E&O insurance is also known as malpractice insurance for professionals like chiropractors, dentists and doctors and professional liability insurance for lawyers, architects and engineers. So now that you know what errors and omissions insurance is, how much of it do you need?

Your Personal Situation

The amount of e&o insurance you need will be determined by your personal situation as well your amount of risk. If you need a notary e&o policy, you’ll want to think about the types of documents you notarize and how often you notarize them. There could also be state requirements that you might have to follow, so you’ll want to look into those as well so that you can be sure that you’re fully protected.

What if You Never Make a Mistake?

It doesn’t matter if you never actually made the mistake that a customer or client is accusing you of. They can make the allegation that you made a mistake and still file a claim with your insurance company. Even if at the end of the claim process you are found to be innocent, you’ll still have to pay legal fees and defense costs.

Errors and omissions insurance acts like any other type of insurance in that it protects you and your finances from unexpected disasters.

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