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Risk Assessment: Who Needs E&O Coverage?

By Chad Chandler | | 0

E&O InsuranceAny person or company that is providing a service needs to have E&O coverage, which is the insurance that protects against errors and omissions. If a business owner is providing a service as a part of his or her job description than E&O coverage should be in place for protection against a liability accident, employee mistake, or unnoticed managerial error that leaves a client unhappy or distressed.

The professionals at Chandler & Knowles CPAs are insurance information leaders when it comes to fitting their business clients with adequate coverage that will protect and serve all of the needs of the customer.

What Types of Companies or Professionals Need E&O Coverage?

The short answer is any business that provides a service would need errors and omissions liability insurance because this type of coverage offers protection in the event of a mistake or mishandling of a client or job duty. The economy of Texas is the second largest in the United States according to Wikipedia. Texas has seen an abundance of growth with small and large businesses in the industries of: technology, tourism, sports and activities, healthcare, craft beer brewing, food/catering, and more. Every one of these industries involves service work to customers that should be protected through E&O insurance coverage. Chandler & Knowles has two office locations, in Flower Mound and Addison, that can provide support to customers regarding securing adequate liability coverage for a business or building.

Travel agents, event planners, and public relations professionals that work within the Texas tourism industry are conducting business at an accelerated pace because clients often need immediate travel assistance and want every detail of an event or party to be planned and executed perfectly. However, even the most competent employees and managers will make mistakes. E&O coverage will offer liability protection should a travel agent double book a reservation or if an event planner miscalculates the guest count for a grand gala that leaves the majority of the attendees without anything to eat or drink.

The sunny weather offered in Texas and the abundant number of parks and beaches means that fitness instructors, coaches, trainers, and sports managers always have a beautiful atmosphere for conducting business. Outdoor workouts and sporting events are fun to organize and oversee, however trouble can happen should a medical injury or accident occur under the supervision of a business professional. The activity and sports industry often brings on demanding clients who want to see strong results for their money. Chandler & Knowles has E&O coverage advice that may be helpful in the event of a contract violation or failure to perform up to a client's expectations.

What Exactly will a Policy for Errors and Omissions Cover?

E&O coverage is liability protection that can offer a lot of relief to the policyholder. Depending on how the policy is written, it will protect the business owner and the owner's employees should a mistake or mishap occur that leads to a liability claim or lawsuit. Legal fees and settlements will typically be covered with this line of protection. Even in the event that a business owner is not at fault, the cost of defending oneself and one's business in court can be very expensive. Therefore having E&O coverage in place will take away the financial strain and pressure that is often brought on when fighting a legal battle in the courts or through binding arbitration.

Professionals at Chandler & Knowles CPAs are constantly available to answer any and all questions before, after, and during the insurance claims process. This way clients know they have a reliable person to contact when it comes to concerns regarding limits of liability and the applicability of coverage and terms.

Contact Chandler & Knowles CPAs if you are a business owner in need of information regarding adequate insurance liability coverage.

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Posted in Insurance, Risk Assessment, Small Business

About Chandler & Knowles CPAs:

Chandler & Knowles CPAs is dedicated to serving our clients with an integrated approach to financial success for businesses, families and individuals. Our knowledgable team is committed to providing you with the most detailed information to answer your biggest financial questions and to help make your life less taxing.

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