Now that you’ve learned the basics on bookkeeping and banking, one of the most important aspects you need to focus on is protecting all of your hard work. A business needs to protect themselves from financial loss or damages that could occur in the case of an accident or lawsuit, which is why business insurance is a priority. Take a look at this week’s blog to better understand the importance of business insurance, specifically Errors & Omissions (E&O).
What kind of business insurance should I get?
Insurance comes in many different forms to fit your company’s many needs, whether it is by way of health insurance, workers comp, commercial general liability, etc. For the sake of creating an appraisal business in this series, we are going to focus specifically on helping you find the best E&O insurance for you.
What is Error and Omissions (E&O)?
Errors and Omissions Insurance is an insurance that covers you and your business if a mistake or negligent act is made on the job, that causes a loss to the client. For example, if you take your car to the auto shop for a repair and the mechanic breaks another part in the process, E&O would come into play. In your situation, if you incorrectly appraise a home as more than it’s worth and the buyer finds out they paid an unfair price, E&O would help cover that claim.
Why do I need E&O for my business or myself?
As invincible as we like to think we are, people make mistakes. Even you. Have you ever felt like you knew everything for a test only to get a poor grade and damage your GPA? E&O helps save your real-life “GPA” when these kinds of things happen. If a client ever claims a loss because of your on-the-job error (or perceived error), you’ll want to be covered in case they go after you for a large sum. E&O has different coverage plans, but can cover legal fees including attorney fees, settlements, court costs, and negligence or bad advice. Having E&O can help prevent financial loss.
How Do I get Set up for E&O?
Start shopping! Do your research on what kind of plan you will need, along with how much each plan costs. To get a quote quickly, click here to fill out the Norman-Spencer Appraisers Errors & Omissions application!
How much do typical E&O coverage plans cost?
Cost will depend on several factors and is customizable. Things that will factor into your cost include business type, location, business size, and coverage limits selected. For the best cost estimate, ask for a quote.
What if I want to have a firm? Is there coverage for the business as a whole?
Whether you are setting up your appraisal business to work on your own or if you are turning it into an actual firm, there is E&O insurance that is built to work around your needs. Again, depending on the size or location the cost will vary, but helpful sites like with a forms like this one can help you create a quote and find exactly what you are looking for. For anyone that may be a newbie to the insurance world, working with an insurance company that breaks it down for you in a way that you can understand it is essential. Norman-Spencer and General Star have created an efficient and time-saving way of helping appraisers find the best and most cost effective insurance that is suitable to their needs.
When it comes down to it, business insurance is a necessity in order to make sure that you and your business are set-up for success.