Home Businesses and E&O Insurance: Who Needs It?

Does a home business benefit from Errors and Omissions insurance coverage?

If you have a small, home-based business, the last thing on your mind may be insurance. Not only is it incredibly important to insure your business, whether it’s at home or in a block of offices or at a local warehouse, but it’s essential you do your research on what risks you may be exposed to. Professional liability insurance, often called Errors & Omissions (E&O) coverage is cover that applies to professional mistakes. Many people think these policies are necessary for trained professionals, such as doctors and lawyers. But could your home-based business need protection, too?

Most businesses need a basic form of liability insurance, which helps to pay for injuries or property damage to a third-party when visiting you. Yet, clients can suffer more than just injuries or property damage – what about financial harm? Businesses that provide a professional service or offer professional advice are at risk of saying the wrong thing that could hurt a client. In such a case, a professional mistake might cause a significant personal or financial loss to the client, and the client could then sue for the damage.

E&O coverage can help to cover legal costs and other settlements related to the allegation. Since the cost of litigation can be devastating for small businesses without insurance, securing the right coverage is imperative to the livelihood for your company. If your business offers advice or a professional service, it is worth considering E&O insurance.

For a tailored business insurance policy to suit your needs and budget, contact McCarty Insurance. We serve residents in Fresno and neighboring cities in California.