Errors and omissions insurance helps protect your business from claims of:
- Errors in services given
- Violation of good faith and fair dealing
- Inaccurate advice
If someone sues your business for making a mistake in the professional services you’ve provided, this insurance can help cover your:
- Attorney fees, which can cost an average of $3,000 to $150,000.
- Court costs, like reserving a courtroom or paying for expert witnesses.
- Administrative costs to put your defense together, such as paying office managers or court reporters.
- Settlements and judgments, which can cost a couple thousand to millions of dollars.
Errors and omissions insurance only help cover claims if:
- It’s filed within your policy period or the extended reporting period
- The incident occurred on or after your retroactive date
The retroactive date means incidents that happen on or after a certain date in your policy are eligible for coverage. The extended reporting period helps cover claims filed within a certain period after your policy expires.