If you're in an advisory role, you'll want protection for anything you omit, or say that's not accurate. When you consult in some capacity for a living, it can come with great rewards and risks. Kentucky business coverage will have a policy called errors and omissions insurance to protect your exposure.

Fortunately, a Kentucky independent insurance agent can help you find coverage for an affordable price. They do the shopping through their network of carriers, all for free. Get connected with a local expert to get started in minutes. 

What Is Errors and Omissions Insurance?

When consulting is part of your business, you could be at risk for a lawsuit without proper insurance. That's where errors and omissions insurance, or E&O, can help protect your business against the following claims:

• Errors in services given
• Omissions
• Inaccurate advice
• Misrepresentation
• Negligence
• Violation of good faith and fair dealing

Size of the consulting market in the US from 2015 to 2020 (in billion US dollars)

The size of the consulting industry means it isn't going away anytime soon. So it's vital to understand how your business should be covered so you can stay in the game.

What Does Errors and Omissions Insurance Cover in Kentucky?

Kentucky E&O insurance is crucial for any business in an advisory role with clients. Unfortunately, it's often overlooked when it's needed the most. E&O insurance usually applies to these professionals:

• Real estate agents
• Business brokers
• Insurance agents
• Lawyers
• Financial advisers
• Consultants

E&O insurance can also help pay for specific parts of a lawsuit. Some of the most common are administrative fees, settlements or judgments, attorney fees, and court fees. 

What's the Cost of Errors and Omissions Insurance in Kentucky?

Carriers look at historical and personal data when calculating rates. This makes everyone's premiums different and specific to their risk factors. Check out what the insurance companies use to determine your Kentucky E&O premium:

• Number of claims in the area
• Your prior claims reported
• Your financial statements
• Your experience level
• How your business operates
• Safety measures taken

Who Needs Errors and Omissions Insurance in Kentucky?

In Kentucky, $4,661,744,000 in commercial insurance claims were paid out in 2019 alone. Your business could need E&O insurance to be adequately protected. Take a look at the following industries that may need E&O insurance:

• Consultants
• Engineers
• Lawyers and legal firms
• Marketing agencies
• Financial services
• Real estate agents and insurance agents

Industry revenue of management consulting services in the US from 2012 to 2024 (in billion US dollars)

A good rule of thumb is to determine if your operation consults or advises in any way. If it does, you probably need E&O coverage so that you can have sufficient protection.

Does Umbrella Insurance Cover Errors and Omissions in Kentucky?

A commercial umbrella policy can help cover a substantial liability loss. However, your business will need to make sure that it has the proper underlying E&O limits, because your umbrella insurance won't cover an E&O loss. Check out how a business umbrella works:

• Commercial umbrella insurance: This provides an additional liability limit for your underlying business insurance policies. It will pay for bodily injury, property damage, and slander losses that exceed your general liability, business property, and commercial auto policies. It excludes an E&O exposure.

How to Get Errors and Omissions Insurance in Kentucky

Your Kentucky commercial insurance policies should be reviewed for accuracy and sufficiency with a professional. It can be challenging to know how much coverage is necessary for your business. Instead of going it alone, consider using a trusted adviser for your errors and omissions insurance.

A Kentucky independent insurance agent can help you find a policy that fits your needs and budget. Since they do the shopping for free, you'll save time and premium dollars. Connect with a local expert on TrustedChoice.com to get started today.