Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

In a nutshell, Errors and Omissions (E&O) insurance is a professional liability insurance policy created to protect professionals, employers, and employees from claims of inadequate work or negligence. Here in  Massachusetts , it’s a useful policy for professionals who work with contracts, finances, investments, and other risks. 

In other words, if your organization could get sued for giving bad advice, or even making an honest mistake on paperwork, E&O insurance is for you. Choosing the right coverage can be complicated, so  Vargas & Vargas  is here to help.

Examples of organizations that should always have professional liability or  errors and omissions insurance  are:

• Realtors and real estate agents
• Insurance agents
• Investment specialists and stockbrokers
• Retirement planners
• Funeral homes and funeral directors
• CPAs and contracted bookkeepers
• Homebuilders
• Some businesses in the manufacturing sector
• Medical professionals

Let’s imagine you own a small retirement planning firm in Massachusetts. You have two  fully licensed  employees. During the flu season, you and one employee are both out sick for a whole week, leaving a single employee to run the office. She’s an excellent employee. You trust her, and so do your clients.

However, the workload is too much, and your good employee makes a few honest mistakes. She provides inaccurate projections to one family and accidentally gives them the wrong answers for what their whole life insurance policies will be worth in a year. Of course, she does this all via email, and your clients have proof of her statements.

All is well until next year when those customers come back to complain they were given the wrong information! They were expecting to have much better results from their investments. They get together and hire a lawyer to sue your business.

This is when your errors and omissions coverage comes into play. It will cover your court costs (up to the limits on the policy). If you need to hire a lawyer and end up paying the difference to these clients, E&O has you covered.

You’ve worked hard, and your business is  growing. Congratulations! It’s probably time to review all of your commercial policies, including your Business Owners Policy (BOP), commercial liability, and errors & omissions coverage.  Get in touch with us  today to speak with a Massachusetts licensed insurance agent. We’d love to review your policies and get you a free quote.