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Errors & Omissions (E&O)

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Errors & Omissions (E&O)

Insurance for Businesses

Shield Your Business from Costly Professional Mistakes

In New York City’s competitive and fast-paced business environment, even the most experienced professionals can make mistakes. Whether you’re a consultant, contractor, lawyer, or IT professional, one error in judgment or oversight could lead to a costly lawsuit. Protecting your business with Errors & Omissions (E&O) Insurance is essential. At Syed Insurance Agency, we provide tailored E&O insurance solutions to safeguard your company from the financial fallout of professional errors and negligence claims.

What Is Errors & Omissions (E&O) Insurance?

Errors & Omissions Insurance—also known as Professional Liability Insurance—covers claims made by clients for inadequate work, mistakes, or negligence in the services your business provides. If a client believes your services resulted in financial loss, they may file a lawsuit. E&O insurance helps cover legal defense costs, settlements, and judgments that could otherwise strain your business’s finances.

Why Is E&O Insurance Important?

If your business provides any professional services or advice, you’re at risk of facing claims of negligence, whether valid or not. In a litigious city like New York, where clients expect high-quality services, the smallest oversight can lead to expensive legal battles. Without E&O Insurance, your company may have to bear the full financial burden of defending against these claims, which can include attorney fees, settlements, and even compensation for damages.

Who Needs Errors & Omissions (E&O) Insurance?

Most professionals should carry E&O insurance. This includes but isn’t limited to:

  • Doctors 
  • Nurses
  • Attorneys
  • Accountants
  • Architects
  • Electricians
  • Plumbers
  • HVAC Installers
  • Engineers
  • Insurance agents
  • Consultants
  • Event planning services
  • Advertising agencies
  • Web Developers
  • Real Estate Agents

Who Does E&O Insurance Cover?

Errors and Omissions Insurance typically covers:

  • Business Owners
  • Business Partners
  • Salaried or Hourly Employees
  • Contractors/Subcontractors

How Much Does Errors and Omissions Insurance Cost?

The cost of an errors and omissions (E&O) insurance policy depends on several key factors that insurers evaluate:

  • Industry Type: Different industries carry different levels of risk for E&O claims. Businesses in higher-risk industries may face higher premiums due to the greater likelihood of professional errors or disputes.

  • Location: Where your business operates can influence insurance costs. Areas with higher rates of legal action often come with higher premiums.

  • Services Offered: The nature of services provided plays a big role. More specialized or complex services can mean higher premiums due to increased professional liability exposure.

  • Claims History: If a business has a history of E&O claims, it may see increased premiums, as insurers consider it a higher risk.

  • Coverage Limits: Higher coverage limits generally result in higher premiums, as they increase the insurer’s potential liability.

  • Deductible Amount: A higher deductible can reduce premiums, though it also means the business will cover more initial costs in a claim

    Unlike many insurance types, E&O insurance isn’t one-size-fits-all. Each business’s unique risk profile determines its policy cost, typically ranging from $500 to $1,000 per person annually, with an average of around $700. While the price may vary, not having E&O coverage could lead to significant financial strain in the event of a claim. Consulting a licensed agent can help you assess whether this coverage is right for your business.

     

Get a Free Errors and Omissions Insurance Quote

Protect your business from costly mistakes and professional liabilities. Contact Syed Insurance Agency today for a free, no-obligation quote on Errors & Omissions Insurance. Our team is here to help you navigate the complexities of E&O insurance and ensure your business is well-protected in the dynamic New York City market.