How to Choose the Right E&O Insurance Policy for Your Business
Whether you’re an entrepreneur, landlord, or small business owner, errors and omissions (E&O) insurance is a must-have safeguard. It not only protects your business finances but also offers peace of mind. E&O insurance coverage is important, but how do you choose the right policy for your business? The team here at Hoffman Hanono Insurance has you covered.
E&O Insurance Details
What is errors and omissions insurance? It’s a business insurance policy designed to protect you against legal and financial risks. What does E&O insurance cover? Most policies offer protections relating to claims of:
- Negligence, such as oversights in the services you provide
- Mistakes or misrepresentations, including claims that your business didn’t meet expectations
- Failure to deliver goods or services as promised
Professional errors and omissions insurance can also help cover any legal defense costs you incur while protecting your business from any claims.
Factors Influencing E&O Insurance Cost
When selecting the right coverage for your business, cost will likely play a factor. Several factors may influence errors and omissions insurance costs, including the following:
Industry
The type of industry you work in plays a big factor in the cost of your policy. High-risk industries like real estate and law could see increased premiums to offset that perceived risk.
Business Size
Larger businesses with more employees tend to need more coverage than a small business with, say, five full-time employees.
Level of Protection
More coverage and higher limits mean more protection for your company. But they also mean higher costs.
History
If your business has a history of claims, lawsuits, or complaints, that history could negatively impact your premiums.
Risk Management
Having clear client agreements and robust internal risk management procedures and policies helps protect against claims. That level of risk management could reduce your premiums.
Tips for Choosing the Right Policy
When selecting your E&O insurance policy, keep these five tips in mind to ensure you lock in the best coverage for your unique, industry-specific needs.
1. Work With a Trusted Provider
When it comes to securing errors and omissions insurance, you don’t want a provider new to the game. Opt for an experienced, full-service agency with a strong track record of success. Here at Hoffman Hanono Insurance, we’ve spent over 50 years connecting Southern California business owners like you with the right policies that balance protection with affordability.
2. Assess Your Risks
You can’t protect against industry- or business-specific risks if you don’t know what they are. Therefore, take time to evaluate the risks your vertical or company faces. A custom policy that addresses your needs has two main advantages: it protects against relevant threats and ensures you only pay for the coverage you need.
3. Explore Combined Options
If you’re a business owner, you likely already have other commercial insurance policies. Bundling your E&O insurance with a single provider may help you save money and streamline policy management. We specialize in offering everything you need, all under one roof.
4. Review Exclusions
Before signing anything, carefully read the fine print. Knowing what is, and is not, covered by your E&O policy ensures your specific concerns are addressed.
5. Lean on Experts
You’re an expert in your industry—you shouldn’t have to be an expert on commercial insurance policies, too! Lean on experienced agents, like the team here at Hoffman Hanono, for help navigating complex terms and comparing policies.
Together, We Can Protect Your Business
Partner with Hoffman Hanono Insurance for the right E&O policy at the right price. We’re standing by, ready to safeguard your business and provide peace of mind. Request a quote to get started!