A simple online search for business-level insurance policies can yield thousands of results. These searches may be a great way to answer the question, “What is the difference between professional liability vs errors and omissions insurance?” However, online searches are just one step in the process of selecting insurance. Here are three additional steps that can help you find the policy that is right for your business.
1. Understand Insurance Policy Terminology
Errors and omissions (E&O) insurance is another term for general professional liability insurance. These policies offer broad protection against a variety of claims. Directors and officers (D&O) insurance covers executives from personal liability in case of any claims made against how they are managing the business.
2. Determine Areas of Risk
Depending on the areas of risk in your business, it may make sense to select a tailored E&O policy or an industry-specific policy. These policies may have the added benefits of covering risks you weren’t aware of and avoiding paying for unnecessary coverage.
3. Talk to an Insurance Agent
While you may be an expert in running your business, it’s still helpful to talk to an insurance agent. Their knowledge, of course, goes beyond the question of professional liability vs errors and omissions insurance. Working with an experienced professional can help you find the best policy to help mitigate your business risks.