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Errors and Omissions Insurance

Errors and omissions refer to mistakes, negligence, or discrepancies in a business’s accounting records, which can possibly be interpreted as fraud and lead to legal action. Business owners and executives have several legal and financial responsibilities that accompany their roles, and if they fail to fulfill these responsibilities by inaccurately reporting income, errors and omissions insurance will reimburse a business for problems arising from these fiduciary oversights.

As a business owner, you know how important it is to live up to your promises. Consumer trust is a key part of earning repeat business, which in turn helps to create a stronger, healthier, and more profitable company.

Errors and omissions claims have been trending higher in recent years, with multiple‑million dollar lawsuits being filed more frequently than ever before. Accordingly, most businesses need to have appropriate coverage amounts to be sure they're protected if a large claim is filed.

What E&O Insurance Covers

Policies can vary, but most forms of errors and omissions insurance cover the following. Note that some industries don't need all of the coverage mentioned below, while others may need additional coverage because of the nature of their operations. Maryann Wain Insurance agents will help you determine which coverages are best for you.

  • Claims and Damages: These are one of the major sources of potential loss that your company faces. E&O protection on claims can reimburse you for any payouts you may have to make as a result of such claims being filed.
  • Defense Costs: Whether or not you win a case, your attorney is going to expect payment. E&O insurance can reimburse you for their fees, allowing you to hire professional support without worrying that it will be too expensive for you to afford.
  • Employees, Temporary Staff, and Independent Contractors: You may be liable for the actions that anyone associated with your business takes—whether or not they're an employee. This part of the policy protects you if they make a mistake.
  • Negligence: Often considered one of the most important parts of E&O coverage, negligence coverage can reimburse you for problems like making a mistake while giving advice or failing to complete a job. Whatever the cause of the problem, ensuring you're covered will help protect your business if something goes wrong.

Errors and omissions policies payouts vary among companies depending on the possible severity of financial mishaps. If you're not sure how much of a cap your business should have in each category, call one of Maryann Wain Insurance agents today and ask them for more information. You may need to increase your policy cap as your business grows, and we can help you decide when it's time to raise the limit.

 

1. Oxford Reference, s.v. “errors and omissions,” www.oxfordreference.com/view/10.1093/oi/authority.20110803095756997?rskey=tDNztO&result=1

2. "Why Consumer Trust Is the Key to Repeat Business." The Wise Marketer. January 2005. Accessed April 18, 2016. http://www.thewisemarketer.com/features/read.asp?id=54.

3. "Claims Trends." Insurance Journal News. November 03, 2014. Accessed April 18, 2016. http://www.insurancejournal.com/magazines/features/2014/11/03/345153.htm.

Our Location

Maryann Wain Insurance

1458 S Robertson Blvd
Los Angeles, CA 90035
Main office: 310-893-1817

Our Providers

Best service ever!! I've been working with them for a few years now- they always get me the best rate! Awesome crew, very helpful- always there to help when I call - prompt and always on time. Could not ask for a better insurance crew. I love this guys! Sophia is the best!! Thank you!!
Roy G.
Sad to see people rate this company lower than a 5. I called Hector Gomez in a panic to get out of my current insurance policy due to a negligent agency. My previous agency quoted me a low price and charged my account $80 more than what she quoted! Hector waved his magic insurance wand and made everything go away, gave me a better policy, and peace of mind. Nationwide is way more up to date with their billing electronically and I'm always aware of what's going on. Any question/s I have, Hector answered them, even late at night when my mind won't shut off and questions kept arising! I highly recommend this company, they're fast, efficient and straight to the point. Thank you guys!
Laura W.
This agency is great!! They are professional, knowledgeable and are there when I need them. The staff are really nice people who are looking to help. I have had bad experiences with the norm insurance agencies but Maryann and her crew seem to make things easier for me. I would recommend this insurance agency to my friends and family!
Natasha R.
Legendary agency. In 2013 my band bought an old transit bus from the city and retrofit it into a tour bus after the advent of a mega-underground national tour. Truth be told I don't know how I ended up on the phone with Edward amidst a sea of dead end insurance calls but within minutes our band finally had our first agent. An insurance agent, yet remarkably more valuable than a booking agent. Safe and insured we hit the road on a most epic road trip. The tale of the band on the moon can probably be read somewhere else on the internet but not here. Fast forward til June 2015 when I am resurrecting the bus for another cross country bound; I'm moments from hitting the road after days of mechanical work to get the engine to fire from being left for dead in Indiana through the winter. I realize the insurance has lapsed. I call and talk to Edward and Sophia and we're insured before we could get a half mile down the road. Since then through storage woes and relocating the bus around southern california Sophia has been diligently helpful and thoughtful checking on my policy and emailing me reminders. Oh and I should not forget to mention her witty charm and overall superb awesomeness. Truly the best service I've ever had with any automobile and they've done it with a moon bus. Thank you!
Greg H.