As a matter of fact, There are many businesses that can get benefit from errors and omissions insurance in Georgia. This kind of protection is a smart idea if you offer professional service.
Investing in mistakes and omissions insurance is one method to do this. This kind of insurance can shield your company against lawsuits brought about by mistakes or omissions made by you or your staff. Some of the common claims are listed below:
- Negligence – This is how one is accused of not taking proper care of one’s work. For example, if an accountant makes a mistake that causes financial damages to a client, they could be accused of negligence.
- Breach of contract – It generally happens when someone doesn’t follow the rules & regulations of the contract. For example, if you fail to deliver a product or service as promised, you could be accused of breaching your contract.
- Misrepresentation – This occurs when someone exaggerates the benefits of their goods or services. For example, if you make a false claim about the benefits of your product, you could be accused of misrepresentation.
It’s crucial to remember that this insurance does not protect against malicious or illegal actions. If you are unsure if your business needs errors and omissions insurance, it is a good idea to speak with an insurance agent.
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Errors and Omissions Insurance in Georgia: What Is Protected?
Most professional liability insurance coverage will cover lawsuits resulting from careless or unlawful actions and mistakes or omissions. Coverage may also extend to acts that are not negligent but result in financial loss for the client. Studying the policy to comprehend the scope of coverage is crucial.
The following are some claims that are protected by professional liability insurance:
- Negligent advice or errors in the performance of professional services
- Failure to perform professional services as promised
- Violation of client confidentiality
- Infringement of intellectual property rights
- Allegations of sexual harassment or discrimination
Every policy will cover not all claims, so it is essential to understand the exclusions in a policy before buying it. Some standard exclusions from professional liability coverage include:
- Claims that arise from criminal acts
- Claims brought about by the rendering of personal services
- Claims that arise from the sale of products
Policies can also vary in the amount of coverage they provide. Some policies may limit the amount that can be paid for a single claim, while others may have aggregate limits that apply to all claims made during the policy period. Choosing a policy that provides adequate coverage for the risks faced by the business or professional is essential.
Errors and Omissions Insurance in Georgia: How Much it Cost?
The cost of your insurance is influenced by the kind of business you run, how big it is, where it is located, and how much coverage you require. For example, a small business in Georgia that only needs $500,000 in coverage might pay as little as $500 per year for its policy. On the other hand, a large business in Georgia that needs $5,000,000 in coverage might pay as much as $5,000 per year for its policy.
Of course, Speak with an insurance agent or broker to get a good idea of how much your professional liability insurance coverage would cost. They will be able to get you quotes from many different insurers and help you find the policy that best meets your needs.
Errors and Omissions Insurance in Georgia: Why to Purchase?
The best reasons for having Errors & Omissions insurance are listed below:
It can protect you from expensive legal claims
If a client sues you for negligence then the costs of defending will be huge. And if the claim is unsuccessful, the legal fees can still be very high. E&O insurance can help to cover these costs, so you don’t have to worry about them financially.
It will protect your reputation
Even if a claim against you is unsuccessful, the mere fact that it was made can damage your business reputation.
It will protect your assets
If you are sued for professional negligence, your assets may be at risk. This is because, in many cases, your business will not have the financial resources to cover the costs of legal defense or any damages that may be awarded.
It will help to retain clients
This is because they want to know they will be protected if something goes wrong.
Depending on the nature of the business or profession, the coverage may change. It is not required by law, but it is generally a good idea for businesses and professionals to have it. Through this article, I hope you understand Errors and Omissions in Insurance in Georgia.