Errors and Omissions Insurance in Florida: What You Need to Know
Over 2.5 million small businesses dominate the business sector in Florida, serving as a powerhouse for job opportunities. However, despite the booming industry, every company, no matter their size, faces the risk of a lawsuit at any time.
It’s every business owner’s nightmare as it can damage their reputation, force them away from their daily operations because they have to deal with claims, and cost them up to thousands or even millions of dollars for larger companies. So, how can you protect everything you’ve worked so hard for?
This is where Florida errors & omissions insurance can help.
Essentially, Florida errors and omissions insurance or professional liability insurance can protect your business from lawsuits due to professional negligence and other reasons. It’s an essential policy for all professionals.
Here’s a quick guide about the errors and omissions insurance policy to help you protect your business and yourself.
What is Florida Error and Omissions Insurance?
Errors and omission insurance (E&O) policy, also known as professional liability insurance, is a dedicated insurance policy that defends business owners and their companies against liability claims or lawsuits due to professional negligence or errors. The coverage from an E&O insurance policy focuses on alleged failure to meet the client’s demand or promises made by the company due to an error or omission in the policyholder’s services or products.
These scenarios are potential causes for clients to take legal action against you. Your general liability insurance will not cover defense costs for these, which usually addresses more direct harm. On the other hand, E&O insurance in Florida or professional liability coverage will cover the legal defense costs, including when the claims turn out to be groundless.
Remember that even if you have decades of experience in the industry, no matter the niche, whether in real estate or software development, there will be a chance that you make a mistake in the workplace. These small errors have the potential to negatively impact your company in Florida, affecting your brand, finances, and reputation. That’s why it’s best not to rely solely on your general liability insurance and shop for professional liability or E&O insurance policies to get the coverage you need and ensure maximum protection.
What Does Errors and Omissions Insurance Cover?
Here are examples of coverage that your professional liability or E&O insurance policy provides, protecting your company in Florida:
- Legal Defense Costs – Your E&O policy covers most legal fees, including lawyer’s compensation, charges for documentation, court and other administrative expenses that you may need to pay for when someone files a liability lawsuit against your business.
- Fees for Negligence Claims – Your professional liability insurance coverage protects your brand against both actual and false liability claims made to your company. For instance, when a client claims you made copyright infringements, despite you having all rights reserved, the E&O coverage covers expenses for the copyright case.
Although professional liability insurance can cover most legal costs, its coverage also excludes some expenses. These include criminal prosecution, employee claims, and lawsuits against you from events that happened before your policy date.
Who Needs Errors and Omissions Insurance?
From the real estate to the technology sector, many professionals from different niches need errors and omissions insurance policy to guard their company, financial resources, and reputation from the risks of liability claims. Some industries may require error and omissions insurance because the risk that is involved is too significant. These professionals are often required to have e&o coverage:
- Real estate agents
- Medical Professionals
- Other Florida business owners
They should have errors and omissions insurance in their portfolios to ensure protection, reputation, assets, and profitability from the high costs of litigation. However, the errors and omissions policy is usually required by law in some areas of Florida for certain kinds of professional practices, especially occupations included in niches like medical, legal, or real estate.
When it comes to real estate agents and brokers in Florida, many clients require proof of errors and omissions insurance before they begin a contract for personal services. Florida errors and omissions insurance for real estate can help cover legal expenses in case a real estate agent or broker is sued for a work mistake or unsuccessful performance.
How Much Does Errors and Omissions Insurance Cost in Florida?
The total costs for errors and omissions insurance coverage in Florida are based on several factors, meaning it’s unique to each profession or business. These include the business’s annual revenue, payroll to employees, number of workers, type of profession you have, liability limits you choose, and credit history. However, the average yearly premium for the standard coverage for an errors and omissions policy for a Florida business is usually around $775.
Protect everything you’ve worked so hard for and contact a local insurance agent to get the best deals on errors and omissions insurance in Florida, allowing you to run your business with confidence.
Did you like this article? If so, make sure you also read more about Business Insurance in Florida.
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