Errors and Omissions Insurance - Florida
What is Errors and Omissions Insurance?
Mistakes always happen, but a single mistake can cost your business a fortune and jeopardize your professional reputation. Errors and omissions insurance (E&O), also referred to as professional liability insurance, is a commercial insurance that protects your business from claims of negligence, oversight, or unsatisfactory work. Suppose a client sues you over an error like missing a deadline or causing financial loss with a consultancy service. In that case, professional liability insurance will cover legal defense costs and associated claim costs.
Errors and omissions insurance in Florida is essential, especially if you own a business that provides professional services or run a consultancy company where mistakes can lead to huge financial loss.
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Get a QuoteWhy do Professionals in Florida Need Errors and Omissions Insurance?
Does Florida Require Errors and Omissions Insurance?
Errors and omissions insurance isn’t required for most industries in Florida, only a few sectors mandate E and O insurance in Florida including:
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Healthcare: Healthcare providers are required to carry malpractice insurance which is a type of professional liability insurance.
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Title Insurance Agents: Title insurance agents are mandated to carry professional liability insurance in Florida with minimum coverage limits of $250,000.
Even though many businesses aren’t required to carry E&O insurance coverage in Florida, it’s highly recommended to keep your business protected from financial and reputational risks.
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Get a QuoteWho Needs an E&O Policy?
Despite not being legally required in Florida, errors and omissions insurance (E&O) is highly recommended for any business offering professional service, expert advice, or specialized solutions. Some clients even require it to ensure their investment is well-protected and that any potential errors will be addressed without financial risk to them.
If you work in any of these jobs, you should consider getting E&O:
- Lawyers and Legal Firms
- IT Professionals
- Small Business Owners
- Healthcare Professionals (legally required to carry malpractice insurance)
- Accountants
- Insurance Agents
- Architects and Engineers
- Real Estate Agents
- Financial Consultants
- Business Consultants
We Serve These Industries
What does Errors and Omissions Insurance Cover?
Florida professional liability insurance covers a wide range of claims arising from professional mistakes, misunderstandings, oversight, or failure to meet client expectations. By covering legal expenses such as legal defense costs and court fees, E&O insurance coverage ensures your business can handle claims without being financially strained. Professional liability insurance in Florida covers several risks such as:
- Professional errors, mistakes, and omissions
- Advice resulting in financial loss
- Misunderstandings and misinterpretations
- Negligence causing financial loss or customer dissatisfaction
What is Usually Excluded under Florida Professional Liability Insurance (E&O)?
Intentional harm, law violations, and fraud aren’t covered under errors and omissions insurance, and they aren’t covered under any other insurance policies either. Some business claims won’t be covered under the E&O insurance coverage, including:
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General Liability Claims: Claims of bodily injury and property damage are covered under general liability insurance, not professional liability coverage
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Intentional Misconducts: Mistakes or misconducts that are proven to be intentional aren’t covered by E&O insurance.
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Cyberattacks: Cyberattacks and ransomware attacks are covered under cyber liability insurance, not E&O
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Employment Practices Claims: Discrimination, harassment, and wrongful termination claims aren’t addressed under professional liability insurance in Florida.
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Contractual Disputes: Claims arising due to breach of contract are not considered negligence and aren’t covered under the E&O insurance policy.
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How Much Does Florida Errors and Omissions Insurance Cost?
On average, errors and omissions insurance (E&O) in Florida costs around $855 annually, but the numbers may differ according to different factors like industry type, business size, claims history, and coverage options.
What Factors Influence the Cost of Errors and Omissions in Florida?
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Industry Type: Some industries have high risks associated with them, such as real estate and financial services, which increases their E&O insurance rates.
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Coverage Options: If you opt for higher coverage limits or lower deductibles, you’ll get higher insurance premiums.
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Business Size: Large businesses require higher coverage limits and more comprehensive plans, which increases their premiums.
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Claims History: If you have a history of frequent costly claims, insurance providers may view your business as a high risk, which increases your premiums.
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Get a QuoteHow Can You Get Cheap Errors and Omissions Insurance in Florida?
How do I Get Errors and Omissions Insurance for My Florida Business?
To get E&O insurance in Florida, contact Florida’s errors and omissions insurance phone number at 844-435-2467, provided by Florida Insure, for assistance in obtaining the right coverage for your business.
You can also fill out a form online and get a quote from the top Florida errors and omissions insurance providers. Our licensed professionals will help you get the perfect coverage for your business at a reasonable price. Contact our agents to know more about what Errors and omissions policies cover, limits, and deductibles.
Tips for Choosing the Best E&O Insurance Policy in Florida
- Assess your insurance needs and the potential risks associated with your business.
- Don’t settle for the first insurance company you see and compare quotes from several providers.
- Learn more about coverage exclusions, limits, and deductibles; it’ll help you choose the right coverage for you.
- Seek professional advice from an experienced insurance agent to ensure your policy aligns with your business needs.
- Having purchased professional liability insurance, keep your policy updated and review it regularly to ensure you’re not missing out on any coverage.
How do I make an E&O Claim?
The process of submitting Florida errors and omissions claims is:
- Thoroughly review your E&O policy and make sure you understand your coverage details and limits.
- Notify your insurance company immediately, delays can lead to claim complications and even denial.
- Work on documenting the incident in detail including contracts, communications, and records.
- Cooperating with the claims adjuster assigned to your case will support your case and expedite the process, so make sure to provide them with all the required documents.
- Consult a lawyer if the claim is complex to ensure your business is adequately protected.
- Limit interactions and avoid making statements that could be interpreted as admitting fault.
- If the claim involves a lawsuit, your insurance provider may assign legal counsel to your business and cover the legal costs.
- Stay in touch with your insurer for any updates or further negotiations if needed.
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Contact UsErrors and Omissions Insurance – FAQs
Yes, similar to any other insurance policy, E&O has deductibles that you can determine when purchasing your policy. The higher your deductibles are, the lower your premium will be.
Calculating the cost of professional liability insurance in Florida depends on several factors including industry type, business size, claims history, and coverage deductibles and liability limits.
For example, small business owners in Florida who work in low-risk industries can pay premiums as low as $61 per month. However, larger Florida businesses with heavy cash flow pay higher premiums due to the higher risks associated with insuring them.
Contact our agents to learn more about small business insurance!
Contact UsThe two types of errors and omissions insurance are:
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Claims-Made Policies: This is the most common type of E&O, and it only applies when both the claim and the incident occurred while the policy is active.
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Occurrence-Based Policies: This type is less common; it covers claims that are submitted after the policy expiry date, provided that the incident occurred when the policy was active.
One year is the standard duration for E&O insurance, and you can always renew it to protect your business. You also purchase an Extended Reporting Period (ERP) to allow you to report claims after the policy has expired, provided that the incident occurred while the policy was valid.
Commercial lines in Florida are the highest contributor to E&O claims by 60%, followed by personal lines contributing by the remaining 40%.
Professional liability insurance limits range between $250,000 and $2 million. You get to choose the limits, seeing that the higher the limit is, the more expensive the insurance premiums get.
Yes, PLI covers the duty to defend, which means that the policyholders may sue the insurance company for not providing legal defense against covered claims.
The two primary types are:
- Claims-Made Policies: Cover claims made during the policy period, regardless of when the incident occurred. The policy should be active both when the event happened, and when the lawsuit was filed.
- Occurrence Policies: Cover incidents that happen during the policy period, regardless of when the claim is filed, even if the policy has expired.
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