ALL California employers must provide coverage for their California employees
Are California Errors & Omissions (E&O) Insurance and California Professional Liability one in the same and does my business need it?
Being a California business owner and industry professional usually requires expert knowledge and credentials that allow much more advantages for your business, such as charging a higher rate and more validation for your clients that you fully understand the work you provide. However, those credentials and expertise can also mean more risk. Since clients expect an expert, many may be less forgiving of a mistake which can, thus, lead to a lawsuit. Fortunately, there is a particular insurance coverage that protects professionals from the inevitable human error in their work, known as California Professional Liability insurance. This type of coverage can be instrumental in protecting your business.
What is California Professional Liability Coverage?
Professional Liability, also known as California Errors & Omissions (E&O), covers the costs from lawsuits against a company for errors or omissions in any act of a professional service for a fee. These mistakes include misstating a fact, forgetting to complete a task, misplacing documents, overlooking critical information, and any other misunderstandings. This coverage is important because lawsuits for such mistakes can be detrimental to a business. Professional liability will not only cover mistakes you may make, but also the mistakes of your full time and temporary employees, including independent contractors, to ensure that your entire business is protected.
Who Needs a California Errors & Omissions (E&O) Quote?
Many companies may not realize that they have an exposure to a professional liability claim however any business whose employees provide a professional service to clients for a charge will need California E&O insurance. Those who need professional liability include business like:
- Lawyers
- IT Consultants
- Medical Professionals (Mal Practice Insurance)
- Marketing Consultants
- Contractors (design, engineering, etc.)
- Real Estate Agents
- Business Consultants
- Contractors with management services
- PR Specialists
- Bankers
- Graphic Designers
- Accountants
- Interior Designers
- Non-profits
- Technology Specialists
It is easy to see how mistakes in one’s work could result in a lawsuit for these business professionals and thus is a clear indication that they need professional liability coverage to fully insure their company.
How can you get a California Professional Liability quote?
Some basic information about your business services and risk management practices are all that is needed for our experienced staff at JVRC Insurance Services to get you started! Our quote for you will be tailored specifically for your business while being the most competitive as we understand every company is unique. We specialize in finding the coverages that will meet the unique needs of your business. With Professional Liability, your credentials and expertise as a business professional will be less of a risk and more of a benefit. Call us at JVRC Insurance for a quote today offering the most competitive premiums!
Recent Blogs
Frequently Asked Questions about Business Insurance
Why is California Workers Comp Insurance so expensive?
Largely because of claims that occur, experience modifications, fraud and payroll amounts statewide
Where do we get the information we post on our blog site?
The Department of Insurance website, The WCIRB, The Insurance Journal and many other trusted sources
What is an experience modification?
It’s a percentage that compares the payroll and loss history of your company to a similar-sized company within the same industry. For example, if a company has a better than average loss record, their experience modification would be less than 100%. If that is the case you would receive a credit on your Workers Comp rates. If that is not the case however it would result in the opposite, an increase in rates. The experience modification can be closely compared to an individual’s credit score.
Why is Workers Compensation Insurance a necessary requirement?
It is illegal in the state of California to not carry it. There will be penalties, fines and many other consequences if a worker is injured and you do not carry it. Furthermore if there is a claim and you do not have California Workers Compensation Insurance at the time the employer is still liable for all costs relating to the injury which can be devastating to any company.
How does your insurance carrier determine what your experience modification number is?
This is calculated based on your payroll, premium paid and by your reported losses for the last three consecutive years
Who regulates and makes California Workers Compensation laws?
The Department of Insurance regulates the laws and the State Senate makes them
What is a Classification or a class code?
It’s a component used determine the price an employer pays for their workers’ comp insurance premium. Classifications are established for each industry and typically include all jobs or operations within a particular business.