Most professionals who provide high-value services have heard about the benefits that errors and omissions insurance can offer. Still, some professionals may be hesitant to add the typical errors and omissions insurance cost to their existing financial obligations. People who question whether purchasing this type of policy is worthwhile should consider the following reasons that errors and omissions insurance can be invaluable.
1. Steep Defense Costs
Some professionals consider forgoing errors and omissions insurance because they believe they will not make mistakes that are harmful enough to result in damages being awarded. However, just mounting a defense against an errors and omissions claim can be costly. Errors and omissions insurance helps address this expense, regardless of whether the claim proves valid.
2. High Likelihood of Claims
Statistically speaking, most professionals are at risk for facing claims involving errors and omissions at some point. Even the most conscientious individuals can make mistakes, and the threat of unsubstantiated claims is also significant. An errors and omissions insurance premium is a small price to pay to offset these risks.
3. Unique Protection
Finally, errors and omissions insurance offers a unique form of coverage that other professional insurance policies, such as general liability, simply do not provide. This extra protection should easily make the typical errors and omissions insurance cost worthwhile.
A Smart Defensive Strategy
Professionals should carefully consider these points before dismissing the possibility of purchasing errors and omissions insurance. Although saving money upfront may seem desirable, the associated risks can be substantial. In the event of a claim, having errors and omissions insurance is a decision that immediately pays off.