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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. Waypoint Insurance Advisors, Inc. 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 Waypoint Insurance Advisors, Inc. 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.

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Waypoint Insurance Advisors

7900 Excelsior Blvd, Suite 100
Minneapolis, MN 55343
Main office: 952-835-4848
Fax: 952-470-2142

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Testimonials

Waypoint provides high-quality professional results for all your insurance needs. In my case, they were able to get me the highest-quality coverage for less money. In addition, they made recommendations that increased my protection. Waypoint surpassed my expectations! Call them today if you’re looking for the best.

Not only are they very knowledgeable about the industry, but they are willing to go the extra mile to find the best rates and policy for your family’s needs. They are very responsive to phone calls and emails and always make themselves available to answer and help with any questions that arise. We wouldn’t even consider going elsewhere. Waypoint came highly recommended by a friend, and we can definitely see why.

My family and I have been using Waypoint Insurance Advisors for many years and it’s for one reason: Personal Service. In an age of impersonal communications and a one-size-fits-all mentality, Waypoint stands out above the rest with their dedication to finding ME the right product at the right price, all with a personal touch. I highly recommend Waypoint.

I have worked with other insurance providers in the past who have claimed to be able to provide the best protection for the lowest price and never found one as honest and dedicated as Waypoint. They took the time to find out what I needed to have done and was able to increase my protection at the same time lowering my costs. Waypoint’s first concern is your concern. They put the customer first and this is what I was looking for in choosing an insurance agent.

Waypoint is extremely responsive and offers a personal touch second to none in my experience with insurance companies. It’s comforting to know I have a local insurance agent that is only a phone call away, no 1-800 numbers! I have referred many families to Waypoint and will continue to do so.