Errors and Omissions Insurance
No matter how skilled, experienced, or careful you are as a professional, mistakes happen. A client claims your advice cost them money. A service you provided did not deliver the results they expected. An oversight in your work leads to a costly error. In any of these situations, you could find yourself facing a professional liability lawsuit that costs tens or even hundreds of thousands of dollars to defend, even if you did nothing wrong.
Errors and omissions insurance, also known as professional liability insurance or E&O insurance, protects professionals and businesses from claims that their services or advice caused a client financial harm. At Ibrahim Insurance Agency in Corona, CA, we help professionals throughout the Inland Empire find the right E&O coverage for their specific industry and risk.
What Does Errors and Omissions Insurance Cover?
Negligence Claims
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If a client claims you failed to perform your professional duties with the level of care and competence they expected, E&O insurance covers your legal defense and any resulting settlements or judgments.
Errors and Mistakes
2
If you make a mistake in your work that causes a client financial loss, E&O insurance covers the claim. This includes calculation errors, incorrect advice, missed deadlines, and other professional mistakes.
Omissions
3
If you fail to do something you should have done as part of your professional service and a client suffers financial harm as a result, E&O insurance covers the resulting claim.
Misrepresentation
4
If a client claims you made inaccurate statements or misrepresented your services in a way that caused them financial harm, E&O insurance covers the claim.
Legal Defense Costs
5
Even if a lawsuit against you is completely without merit, defending yourself in court is expensive. E&O insurance covers your legal defense costs regardless of whether you are ultimately found liable.
Prior Acts Coverage
6
Many E&O policies offer prior acts coverage, also called retroactive coverage, which covers claims that arise from work you performed before the policy was purchased as long as you were not aware of the potential claim at the time you purchased coverage.
Frequently Asked Questions
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E&O insurance is not required by California state law for most professions. However, some professional licensing boards, industry associations, and client contracts require proof of E&O coverage before you can practice or work.
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Intentional damage caused by tenants is typically not covered by standard landlord insurance. However, accidental damage by tenants may be covered depending on your policy. Some carriers offer tenant damage coverage as an add-on endorsement.
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If you are renting out a room in your primary residence and still living there, a homeowners policy with a home-sharing endorsement may be sufficient. However if you are renting out the entire property, landlord insurance is the appropriate coverage.
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Standard landlord insurance does not cover lost rent due to tenant non-payment. Loss of rental income coverage only applies when the property is uninhabitable due to a covered physical damage event. Rent guarantee insurance is a separate product that covers non-payment but is not widely available in California.
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In most cases coverage can be bound within one to two business days. Call Ibrahim Insurance Agency and we can often have you covered before your tenant moves in.