Particularly if you’re a small business, you may have a lot of questions as to the cost of E&O insurance NJ. After all, your income is limited and you have a lot of expenses just running your business every day. You may not think you can afford to shell out even more for E&O insurance NJ as part of your commercial lines property and casualty insurance services. However, when you break it down, you’ll see the value and benefit of having such insurance.
First off, a little bit about E&O insurance…E&O is short for errors and omissions, and is designed to cover any errors made on your part during the course of providing professional services. This crucial type of professional liability insurance is necessary for many industries and professionals, such as advertising agencies, claims adjusters, court reporters, private investigators, architects, accountants, appraisers, photographers and teachers. Basically anyone with a higher than normal risk – such as lawyers and doctors – should have an Errors and Omissions insurance policy in place.
Because lawsuits can be extremely expensive, possibly wiping out your entire small business in one fell swoop, you need to mitigate that risk through investment in an Errors & Omissions Insurance policy. This will cover you in regards to the following:
- Hourly lawyer fees
- Court costs
- Administrative and discovery costs
- Expert fees
- Settlement costs
It’s impossible to give an across-the-board rate for E&O insurance NJ without knowing some specifics about your company. When you sit down with your agent at The Kerr Agency, we will help determine your risk and what your rates would be. Here are some of the questions we will ask:
- How big is your company? Your rates will depend on your revenue and the amount of employees you have.
- What do you do for business? Some businesses are more lawsuit-prone than others.
- Where is your business? For example, Boston doctors charge more than Kansas doctors.
- How are your contracts written? If you have a well-written contract with your clients, your liability exposure may put you at less of a risk.
- How are your employees trained? Many times, companies are sued over actions by employees, which is why it’s critical to have employees who are extensively trained and experienced.
- Have you ever been sued for errors? Your past involvement in lawsuits as well as how you’ve handle prior mistakes will all have a hand in your final rate.
- Do you have solid quality-control procedures in place? Companies are less likely to be sued when they place a high priority on client and employee satisfaction.
Another factor in determining your rates involve the decisions you make on policy coverage. For example, insurance can have higher or lower deductibles and policy limits, all of which can determine how much your monthly or annual premiums will be. You may choose to add on other coverage line items, such as intellectual property, which will also affect your rate.
By its very nature, E&O insurance NJ is claims-made, which means you’re only protected for events and claims that occur during an active policy. That’s why it’s important to act fast and get covered now. Call The Kerr Agency today to learn more about E&O insurance NJ, how it can help you, and how much your policy would cost.