Errors and Omissions Insurance

errors and omissions insurance

E&O Insurance

A motorcycle can be a great way to get around town, but getting into an accident can be expensive, and depending on the damage, you may not have enough coverage. It’s important to take the time to make sure you’re fully protected with your insurance before taking your bike out on the road. Here are three common myths about motorcycle insurance that you should know about before buying your policy.

1) What is an E&O policy?

E&O policies are designed to protect a business from errors and omissions that lead to monetary losses. E&O policies provide coverage for attorneys’ fees and court costs as well as defense costs if you’re sued in connection with your business.

In addition, some states require certain professionals to carry an E&O policy including loan officers, real estate agents, accountants, property managers and even barbers. If you need coverage of any kind related to your motorcycle insurance needs consider purchasing an E&O policy along with your other type of insurance because it’s easy and inexpensive. Furthermore, adding an E&O rider is cheap—typically between $20-$50 per year. A small price to pay for added protection!

The 3 common myths about motorcycle insurance:

Myth #1: You don’t need motorcycle insurance if you have car insurance. This myth makes sense on paper but it doesn’t hold up when you look at reality. It’s possible that both types of insurance will cover damages to your bike or injuries sustained while riding, but each has its own rules and time limits. Even though auto insurers might cover damage to your bike in an accident caused by someone else, they won’t necessarily cover liability (damages) or medical expenses incurred by another party involved in an accident with you—like a pedestrian who gets hit by your bike while walking across the street or another driver who crashes into you while making a turn at high speed.

2) Why do I need it?

You should think about purchasing errors and omissions insurance if you provide service to third parties. The subject of an E&O policy, or errors and omissions insurance, is typically a lawyer, accountant or other professional who is hired by a client to do work that might result in harm—injury, property damage or another type of loss—to someone else.

This policy helps cover costs when it comes to defending yourself against claims arising from your services provided to clients. For example, if you are an attorney who represents a client accused of driving under the influence and getting into an accident with another driver (resulting in serious injury), that lawyer’s liability insurer may step in to help defend him/her against any legal action taken by victims involved.

3) How much does it cost?

Basic errors and omissions insurance coverage is affordable, but premium pricing can make e&o insurance more expensive than other forms of motorcycle insurance. Most insurers require you to carry a policy with $1 million in liability coverage along with $100,000 in e&o before they’ll agree to sell you an e&o plan. If you have a line of credit, lenders often require e&o coverage as well. The good news is that cheaper premiums come with higher limits—for example, while most policies start at $100,000 and go up from there, some are available for upwards of $500,000. This way, you pay less per year even if your business gets bigger. It’s also worth noting that larger firms tend to get better rates than smaller ones, so if your company grows, it might be worth getting re-rated by your insurer.

The three biggest myths about errors and omissions insurance:

1) It doesn’t matter whether I have it or not

2) I don’t need it until my business gets big 3) I don’t need it because my customers know me on a personal level . All of these are false. Errors and omissions insurance is vital for any small business owner, especially those in creative fields like writing, art, architecture, etc. Even if you’re just starting out with a small client base, errors and omissions coverage is still something you should consider purchasing.