Errors & Omissions (E&O) Insurance in Kentucky & Tennessee
Professional Liability Protection for Service Businesses
For businesses that provide professional advice, recommendations, or services in the London, KY, Tri-County area, a different type of liability is necessary. Errors & Omissions (E&O) Insurance, also known as Professional Liability, is designed to protect your company from financial loss resulting from a client's claim of a negligent act, error, or omission in the professional services you provided. This is a crucial defense that is not covered by a Commercial General Liability (CGL) policy.
London Insurance Agency has been dedicated to securing the financial stability of local businesses since 1922. As an independent agency, we leverage our deep market access and our Keystone Partnership to deliver tailored E&O solutions. We have the expertise to address complex insurance needs for professionals like consultants, real estate agents, IT providers, and many other service industries. Our licensed professionals will assess your exposure and guide you toward a policy that provides maximum benefit and protection.
What E&O Insurance Defends Against
E&O coverage is designed to protect you from claims that arise out of the performance (or failure to perform) of your professional services, even if the claim is baseless.
It is important to note that E&O is generally a claims-made policy, meaning it must be in force both when the error occurred and when the claim is filed for coverage to apply. Our experienced agents will clearly explain this critical distinction.
Negligence or Error: A client claims a mistake or faulty advice by your firm led to their financial loss.
Omission: A claim that your firm failed to perform a professional service or missed a critical step, resulting in client harm.
Misrepresentation: A client alleges that your service or product was misrepresented.
Defense Costs: The policy typically pays for legal defense costs, settlements, or judgments, which can be astronomical even if the lawsuit is dropped or found in your favor.
Customized Protection for Professionals
The policy structure and limits for E&O must be carefully chosen based on your industry, client size, and the potential severity of a financial loss stemming from your services. We offer a broad range of coverage options so you can tailor your policy limits and deductibles to what matters most. For businesses providing diverse services, we ensure the definition of "Professional Services" within your policy is broad enough to cover all aspects of your operation.
Through the Keystone Insurers Group network, we tap into a wealth of specialized knowledge to ensure your E&O coverage is correctly structured for your industry's specific regulations and common claims. Our goal is to create a plan that fits you, not a generic, inadequate solution. We advocate on your behalf, handling all communications with the insurance companies to make sure your liability protection fits your evolving needs.
Your Local Partner in Professional Security
We provide ongoing support whenever you need it, reviewing your policy annually to ensure it keeps pace with your business's growth and changes in your service offerings. Our goal is to provide you with the insurance you want at the lowest possible price, while providing you with the highest level of customer service. You can rely on our agents to deliver competitive products and superior expertise, securing your professional future in London, KY.
FAQS
FAQ for Errors & Omissions (E&O)
Why is E&O necessary if my London, KY business already has Commercial General Liability (CGL)?
CGL covers physical claims (bodily injury, property damage) but excludes professional errors. E&O is necessary because it covers financial claims resulting from your advice, mistakes, or negligence.
Does E&O cover a wrongful termination lawsuit from one of my employees?
No, E&O specifically covers professional services to clients. Claims related to employment practices, such as wrongful termination or discrimination, require a separate policy called Employment Practices Liability Insurance (EPLI).
What is a "claims-made" policy, and why is it important for E&O?
A "claims-made" policy only provides coverage if both the wrongful act occurred and the resulting claim is reported while the policy is active. This is why continuous E&O coverage is critical for professionals.
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