New York is a busy state, with approximately 190,445 small businesses operating in New York City alone. Of those small businesses, there are thousands that provide professional services for a fee. Professional services include but aren’t limited to legal services, insurance coverage, medical care, real estate consulting, therapy and more. In order to keep operating without a hitch, those professional service providers need to protect their stake in the New York economy. Errors and omission insurance in NY can help them do that.
What is E&O Coverage?
Errors and omission insurance is designed to help professional service providers in the event of a lawsuit stemming from claims of negligence. These claims can arise from any number of issues but are most commonly the result of:
- Oversights and errors
- Contract Breaches
- Subpar or incomplete work
Most E&O policies cover damages and settlements from a single claim, defense fees and court fees. However, some policies are more extensive than others.
In short, errors and omission insurance in NY provides protection from financial loss that is the result of a service provider’s error or oversight.
Like all insurance policies, E&O policies come with their share of exclusions. Standard exclusions include but aren’t limited to:
- Punitive damages
- Claims arising from acts of fraud
- Claims reported under a previous policy
- Bodily injury
Most E&O policies require a retention fee, which means policy carriers must pay a small amount out of pocket for each claim filed.