Errors and Omissions Insurance
For anyone who is a person widely considered a professional, like a physician, a licensed engineer, an architect, or even a legal practitioner, you may already know about professional liability insurance or what’s also known as errors and omissions insurance. This kind of insurance provides insurance coverage for professionals in case there are problems of negligence due to the professional services they give. Accidents occur, and the unexpected happens for no reason and, if by any chance, you, as a specialist, become victim to inevitable situations, then it would be to your best interest to be armed with the errors and omissions policy.
The errors and omissions policy features might include quick personal service, availability of an installment payment plan in the event the professional is currently not able to pay the entire amount in advance, a comprehensive benefits package, an application process that is simple in nature, and admission of the insurance program in all fifty states. The policy ought to be underwritten by an A double plus carrier (rating needed for the underwriter), a Prior Acts coverage, a Referring Party coverage, and it should include both residential and commercial work and finally an unlimited number of referrals.
In the event you’re doing work under the umbrella of a corporation, or, if you’re in fact part of said corporation, insurance coverage is also available to protect the assets of the corporation in the event it might be named as part of the defendant list in a lawsuit, although the coverage is optional. Even so, the individual also needs to be covered by the insurance for the company.
The errors and omissions insurance involve a general liability policy with a limit coverage of a million dollars for each event with a 500 dollar insurance deductible. This coverage applies for general liabilities concerning unintended injury to others, accidental injury, property damage, and bodily injury.
Given that these are legal matters and legal parlance is a language that a lot of us are unfamiliar with, it would be a wise decision to get familiar with some of the most standard issues surrounding this type of insurance. It does not hurt to be in the know. For instance, we need to recognize that a “claims made” policy is a rule that shields the insurance policy holder from claims of any damage or harm happening while the coverage is in place.
Now you have to really understand this explanation since misunderstandings could cause your demise in the court of law. For a “claims made” plan, the report or the claim ought to be sent in within the policy period, and this is regardless of when the claim actually happened. However, with the occurrence policy, the point of claim should, in fact, happen during the policy time frame or period and the report or specific claim can be done at any time.
Some time ago, a necessary aspect of the errors and omissions insurance was added which is the general liability policy. This insurance policy consists of property and bodily damage while you’re at the scene of the event possibly while performing a home inspection or making changes on the design of the building. It doesn’t supply insurance coverage to the employees and the sub-contractors.
Fortunately, an installment plan for coverage is accessible. The initial payment is placed at 295 which will involve a 100 dollar enrollment fee which is non-refundable. Then the following payments will be obtained in three different installments every ninety days. You can also arrange it on automatic deduction using your charge card or debit card.
