Errors and ommissions insurance is for professionals who are self employed. It offers protection from legal claims related to your work. This type insurance is in addition to basic liability insurance an covers errors or ommissins made while carrying out work in your profession.
States have their own individual requirements for insurance coverage, so it is important to check with your state to determine the minimum requirements. But keep in mind that the miniomum requirements may not be the amount of coverage that you really need for adequate protection form legal claims. You should make this determineation along with an insurance professional to make sure you have the amount your really need.
You will need traditional commercial property insurance if you rent, lease or own business property an equipment. This type insurance will protect against fires, breakins, floods or other types of disasters. By taking certain safety precautions, such as, burgular alarms and sprinkler systemes you can obtain discounts on insurance costs.
But professionals need errors and ommissions insurance to protect their professional reputation, which is an important asset. In our society today people tend to make legal claims for jusdt about anything they can, some ligitimate and some not. but in any case it is expensive to defend yourself in court. Errors and ommmissions insurance will help to cover those costs.
This type insurance can help you keep the business going when things get tough. It may ultimitly be a matter of survival because one legal claim can be devistating to a small business.