Errors & Omissions Liability Insurance To Protect Your Tennessee Business

Everyone makes mistakes, and sometimes these mistakes are costly. Even the best risk management practices can’t circumvent that fact. And the litigation costs associated with mistakes—whether real or perceived—can be enough to sink a small business or seriously harm a large one. Companies and individuals in certain industries need protection from claims made by clients for inadequate work or negligent actions. This is where errors and omissions (E&O) insurance really comes in handy.

For example, a financial advisor whose recommendation for an investment turned out to be a flop, a printer who printed the wrong wedding date or location on a ream of invitations, or a travel agent who booked an incorrect departure date could be protected from the potentially dismal financial repercussions of a lawsuit. This form of liability insurance is available to cover court costs and settlements up to the amount specified on the insurance policy. Some investors and regulatory bodies—the Financial Industry Regulatory Authority (FINRA), for one—actually require E&O coverage of those whom they invest in or regulate.

What Is Errors & Omissions Insurance?

E&O insurance protects a company (or an individual) when a client holds you responsible for a service that you provided or failed to provide, or that did not have the expected or promised result. Malpractice insurance—for doctors, dentists, and chiropractors—is a form of E&O insurance, as is professional liability insurance — for lawyers, accountants, architects and engineers.

Depending on the industry you’re in, this form of liability insurance may be critical, as legal fees can be very high even if a court or arbitration panel finds in your favor. With an E&O policy, judgments, settlements and defense costs will be covered. In the case of small businesses, this kind of insurance has been known to help avoid bankruptcy; in larger companies it can also have a large impact on the bottom line.

Do I Need Errors & Omissions Liability Insurance?

The answer to this question depends greatly on the industry in which you work, as lawsuits are far more common in some industries than in others. In general, you need E&O insurance if you provide a service to clients for a fee. The following are just a few of the professionals who may benefit from E&O coverage:

  • insurance brokers/dealers/agents
  • registered investment or financial advisors
  • printers
  • electricians, plumbers, HVAC installers and sheet metal workers
  • travel agents
  • real estate agents
  • event planners

Errors and omissions coverage represents only one component of a comprehensive liability policy. Elite Insurance Solutions will ensure that the coverage you get is customized to meet your company’s specific needs so that you can stop worrying. For more information, visit our Locations & Contact page and find the Tennessee location and agent nearest you.


Let Elite help you in your search for the right group health insurance plan. This type of business insurance could make a big difference in a potential employee’s decision about working for you.

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Before Elite we really didn’t have a relationship with our insurance agents. Randy Hulett came into our place in 2010 and offered us a less expensive & more comprehensive insurance package. As a bonus, we also get a confident, knowledgeable and smiling agent! We’ve been with Elite ever since. All requests and questions are promptly handled by Randy and his staff. I highly recommend Elite Insurance for all your business related insurance needs. They will take care of you!
~ Jeanie Winkler, Nashville, TN