Errors and Omissions Insurance Florida: What You Need to Know

In Florida, professionals who offer advice or services to clients can be held liable for any mistakes or omissions that result in financial losses. This is where Errors and Omissions (E&O) insurance comes in, providing protection against lawsuits and financial damages.

E&O insurance is designed to cover professionals in various industries, including real estate agents, accountants, lawyers, and more. Florida law requires certain professionals, such as real estate agents, to carry E&O insurance to protect their clients.

If you're a professional in Florida and you're not already carrying E&O insurance, it's essential to consider purchasing a policy to safeguard your business and reputation.

Errors and omissions insurance is a type of liability insurance that protects professionals and businesses from financial losses due to mistakes or oversights in their work.

It's designed to cover the costs of defending a lawsuit and paying damages if a client or customer suffers financial loss due to an error or omission.

This type of insurance is often required by professionals such as lawyers, doctors, and architects, but it's also beneficial for businesses like contractors and consultants.

The policy typically covers claims for negligence, misrepresentation, and breach of contract, among other things.

In Florida, errors and omissions insurance is especially important for businesses that provide services that can have a significant impact on their clients' finances, such as financial advisors and accountants.

In Florida, E&O or Professional Liability insurance is not legally required, but it's highly recommended to have a policy in place. This is because clients may require you to have insurance coverage before they'll work with you, and it can also be a requirement for membership in certain professional associations.

Having E&O insurance can protect your business against common forms of liability claims, including errors, omissions, missed deadlines, undelivered services, negligence, and breach of contract. It can also cover legal defense expenses, settlements, and judgments.

In Florida, small businesses are the backbone of the economy, making up 99.8% of all businesses in the state. Having a safety net in place, like E&O insurance, can help safeguard your enterprise's finances and professional reputation.

Here are some key benefits of E&O insurance:

E&O insurance can also provide protection for claims of vicarious liability that arise from the actions of your employees and contractors, as well as claims from services provided in the past and work performed anywhere in the world.

In the event of a lawsuit, E&O insurance can cover attorney's fees, underwriting and documentation charges, court fees, and other administrative costs associated with defending your business.

Intentional malpractice is not covered by Errors and Omissions insurance in Florida.

Fraud and dishonesty, illegal acts, known claims and circumstances, property damage, and workplace injuries and serious illness are also excluded from coverage.

E&O insurance does not protect against claims of intentional malpractice, so if you intentionally cause harm to a client, you're on your own.

To give you a better idea of what's not covered, here's a list of exclusions:

This means that if you're sued for something you intentionally did, E&O insurance won't bail you out.

The cost of Errors and Omissions insurance in Florida is approximately $855 per year, but this can vary depending on your business's specific needs.

Factors that influence your premium include your type of occupation or industry, annual revenue, staff size, employee licensing and experience, past claims history, and risk management procedures.

In Florida, the cost of Errors and Omissions insurance is determined by a range of different factors and is unique to each business.

A one-time premium gives you protection from expenses related to settlements, judgments, attorney fees, and court costs, and the total coverage amount depends on the policy's coverage limit.

Here are the factors that can determine your E&O insurance premium in Florida:

The higher the protection purchased, the more you can expect to pay for your policy.

Filing a claim against your errors and omissions insurance in Florida can be a daunting task, but understanding the process can help you navigate it more efficiently.

You'll want to provide your policy provider with all available information related to the claim, documenting everything in writing to help your case. Your notary journal is especially important during this stage.

Work directly with the person at the insurance company who handles claims. If recommended, find a lawyer who specializes in liability insurance cases. Don't discuss case details with anyone except the claim professional and your lawyer.

If it's clear that you made a mistake and the claim against your bond has merit, have the insurance company and/or lawyer try to reach a settlement outside of court.

Some types of E&O claims that may be denied include claims involving previously known but unreported errors, criminal acts, fraud, guarantees or warrantees, punitive damages, and workers compensation issues.

Here are some common reasons for denial of E&O claims:

If you're a business owner in Florida, you might be wondering who needs errors and omissions insurance. In Florida, it's essential for professionals who offer advice or provide services to consider an E&O policy, as anyone can sue your business if they feel they've suffered a loss due to your services.

Consultants, real estate agents, insurance agents, technology firms, lawyers, accountants, engineers, and architects are among the occupations that typically require E&O insurance. Business partners and licensing boards may also require errors and omissions insurance by contract.

Here are some examples of professionals who need E&O insurance in Florida:

Who Needs It?

If you're in a profession that requires giving advice or providing a professional service, you should consider an errors and omissions policy. Business partners and licensing boards may also require errors and omissions insurance by contract.

Consultants, real estate agents, and insurance agents are just a few examples of professionals who need E&O insurance. Technology firms, lawyers, accountants, engineers, and architects also fall into this category.

Anyone can sue your business if they feel they've suffered a loss due to your services – actual or perceived.

Investing in your own real estate agent errors and omissions (E&O) insurance is crucial for protecting yourself and your family from potential financial risks. You need a policy designed specifically for your real estate activities, not a generic policy used for multiple industries.

A customized E&O policy can cover your real estate-specific activities and risks, providing peace of mind and financial protection. This includes coverage for injuries or property damage that may occur during open houses, showings, or other selling activities.

You'll also have access to expert pre-claim legal services to help prevent claims, which can be a valuable tool in reducing your out-of-pocket claims costs. In fact, 1 in 5 claims are permit-related, and providing a building permit history report to a buyer before closing can reduce your out-of-pocket claims cost up to $2,500.

Here are some key benefits of investing in your own real estate agent E&O insurance:

With individual E&O protection, you'll have control over your coverage, ensuring there aren't any gaps in protection to put your livelihood and personal assets at risk. This is especially important if you change real estate brokerages or if your office's E&O policy is cancelled or exhausted.

The Germain Law Group in Orlando specializes in errors and omissions insurance law.

Michael Germain is an insurance law attorney who represents clients throughout Orange County and parts of surrounding counties.

He can review your case and answer your questions when you call (813) 835-8888 or fill out an online contact form to schedule a free consultation.

If your insurance company is refusing to honor its E&O policy, seeking legal representation as soon as possible is a good idea.

You can reach out to The Germain Law Group for help with liability insurance matters and to work towards the most favorable outcome possible.

In Orlando, Florida, there's a lawyer who specializes in errors and omissions insurance problems.

You can contact the Germain Law Group if your insurer has denied covering your recent E&O claim.

Michael Germain, an Orlando insurance law attorney, helps clients in Orange County and surrounding areas, including communities in Seminole County, Volusia County, St. Lucie County, and Osceola County.

You can reach out to the Germain Law Group by calling (813) 835-8888 to schedule a free, no-obligation consultation with their lawyer.