Which Industries Need Errors and Omissions Insurance the Most?
As we’ve discussed in a number of previous posts, Professional Liability or Errors and Omissions Insurance is a necessary coverage for any business that provides services or professional advice to their customers. While it can benefit any industry or business though, there are some businesses that stand out amongst those who need in the most.
For example, one industry where Errors and Omissions Insurance is particularly important is financial institutions. As we mentioned in our post “Why Professional Liability for Mortgage Bankers is Crucial”, financial institutions may face a claim due to a misrepresentation of loan terms or a class action lawsuit for excess fees, even if these mistakes or omissions were unintentional.
A second industry that needs this coverage the most is the insurance industry. Yes that’s right; you should certainly be covered by Errors and Omissions Insurance. As an industry that can be responsible for financial obligations reaching millions of dollars, being protected from accidents and mistakes can save huge sums of money for an insurance company.
One last entity that is often forgotten about when it comes to insurance needs is freelancers. Sole proprietors and other freelancers could need Errors and Omissions insurance depending on the specific industry and the types of clients they have. Most freelancers will find that adding an Errors and Omissions policy to their insurance portfolio will yield them a dramatic increase in the number of companies willing to hire them.
At PL Risk Advisors, we understand that running a professional services business exposes your clients to extraordinary liability risks. Even firms that strictly adhere to best practices can find themselves accused of errors or omissions that result in significant loss. To learn more about how we can help protect your clients of various professions, please contact us at (855) 403-5982.