Massachusetts professionals are hired for their expertise, and clients expect them to apply their expertise correctly. Should professionals make a mistake in their work, they may be held financially liable for the consequences. Purchasing errors & omissions insurance is one way that professionals can help shield themselves from this potential risk.
Errors & omissions insurance coverage is a specialized commercial liability insurance that’s designed to meet the needs of professionals. Like other types of professional liability insurance, E&O insurance normally helps with legal costs, settlements and judgements when a policyholder has a covered claim.
While many different Massachusetts professionals can benefit from having some form of professional liability insurance, E&O insurance is most often helpful to professionals who primarily give advice. Attorneys, insurance agents, real estate agents and investment advisors might want this insurance for example. In some cases, tradespeople, landscapers and IT consultants might also want a policy if they make recommendations to customers.
Importantly, E&O insurance doesn’t meet the needs of all professionals. The most notable example is medical professionals, who usually need medical malpractice insurance instead of an E&O policy.
Any professional who’s unsure whether this or another type of professional liability insurance is better for their situation should talk with a knowledgeable insurance agent. An agent who’s familiar with E&O policies will be able to determine whether this type of policy adequately meets a professional’s needs or if there’s another insurance option that would be more appropriate.
Exactly what a given errors & omissions policy covers is determined by that policy’s terms, conditions and exclusions. Depending on a policy’s terms, this coverage might provide protection in scenarios like the following:
In many cases, E&O coverage is adjusted to meet the particular needs of a given field. An attorney’s E&O coverage will likely provide slightly different protections than a landscaper’s for example. A knowledgeable insurance agent can help professionals find a policy that’s designed to meet the needs of their field.
Errors & omissions coverage is often underwritten as “claims made” coverage. This type of insurance coverage generally determines the coverage window according to when claims are filed. That’s different from other insurance coverages that go by when an incident occurred rather than the claim filing date.
Although claims made coverage normally focuses on when a claim is made, most policies do have maximum discovery period and retroactive dates. If an incident is outside of these periods, it might not be covered even by a claims made policy.
Since policies vary in who they cover and what protections they provide, premiums for errors & omissions coverage varies. The best way to determine how much coverage would cost in a specific situation is to request quotes from several insurance companies and compare those quotes. An independent insurance agent can assist with this process.
If you need help securing errors & omissions insurance in Massachusetts, contact Garrity Insurance. Our independent insurance agents can help you check policy options from multiple insurers since we’re an independent agency, and we have the expertise necessary to help you decide which is the best policy for your situation.