If you work in a professional field that gets sued regularly, it’s pretty important to have some insurance that protects you. In fact, for many fields, a company will not even hire you unless you have adequate E&O insurance. Since it’s so important, let’s discuss how you can get an errors and omissions insurance quote online. Along the way, we will explore a bit of this E&O world to get a better understanding of it.
To explain this one, I would like to use an example from my own experience. Among other titles, I am a notary public in Baton Rouge, LA. I work for a lot of mortgage companies for loan closings. Most of these companies will not hire me unless I have a certain amount of errors & omissions insurance.
Most title companies require me to carry a minimum $10,000 policy. Some require me to carry a $100,000 policy. This insurance pays out when a claim is made that I committed an error or negligent act that caused financial harm.
For instance, let’s say that I failed to have a borrower correctly sign a mortgage. Now let’s say that the lender needs to foreclose, but the error that I committed causes them additional legal hurdles along the way.
That lender may in fact file suit against me, or at the very least fie a claim against my E&O company. Let’s say that their claim has a value of $20,000. As long as I have enough insurance, my errors and omissions company will pay the claim so that I don’t have to find money in my wallet to settle with them.
Or at least that’s how it’s supposed to work.
There are many professionals that carry this type of a policy. There are also many professional service companies that purchase these policies. In our previous example, the title company that hired me most likely had a policy of their own.
There are many E&O insurance companies out there that offer professional liability coverage. Some of the better known examples are Nationwide Mutual Insurance Company, GEICO, Travelers Casualty, and Liberty Mutual. There are actually many more that you can find with a quick Google search.
The best way to get an errors and omissions insurance quote online is to simply come up with maybe 5 large companies that you can trust by doing a search. Next you will want to determine the amount of coverage that you need. You can then contact each of these companies online and ask for a free quote.
Remember that most of these will give you a better rate if you pay for several year up front. Most of them will offer just a 1 year policy, but you can get a deep discount if you pay for 5 years up front.