Small business owners have lots of things to worry about when running their businesses. And insurance is not always top of mind. But as their agent, you can help your commercial clients understand if they need errors and omissions insurance as part of their policy package.
Read on to learn more about whether you should recommend E&O coverage to your small business owner clients — and if so, how you can help them find the best policy for their needs.
Errors and Omissions Insurance is Helpful Coverage for Many Small Businesses
As an independent agent or broker, you likely already have errors and omissions insurance coverage for your own business. If you don’t have this critical coverage, get a quote now.
And when it comes to your small business clients, many of them need E&O insurance coverage, too. Some of the classic examples of professionals who would benefit from carrying the coverage include architects, real estate agents, accountants, engineers, and therapists. But new small businesses have emerged recently that may also benefit from having errors and omissions coverage.
Some of these emerging small businesses or self-employed professionals that may need E&O coverage include:
- Influencers. Social media influencers often have hundreds or thousands of followers — and they often cut brand deals to recommend products to their audience. And many influencers give advice in their videos, messages, and posts. This creates the risk of an errors and omission claim.
- Web designers and IT developers. Missing a step or making a mistake in a line of code could open a client up to a cybersecurity breach or ransomware attack. Website designers, IT programmers, and developers are at risk of potential E&O claims for errors in their programming, design, and advice to clients.
- Translators and interpreters. Foreign language translators and interpreters are in high demand in today’s global economy. But with a fast-paced job requiring high accuracy, there is room for error. Translators could make a costly mistake if they miss a critical detail or transpose a number accidentally. An errors and omissions insurance policy could help protect these professionals from these types of claims.
- Affiliate marketers. Affiliate marketers are independent marketers. They market for various brands and products, earning a commission for sales they direct. These professionals market the products they represent in many ways, recommending brands or products to others. And by giving advice or recommendations, these marketers can take on some risks that E&O coverage could help protect against.
- Freelancers. The pandemic forced many people to leave their regular jobs and take up freelancing gigs instead. These professionals may need errors and omissions insurance depending on the type of freelancing work they perform. Talk with your clients who freelance to determine what they do when deciding if you should recommend E&O coverage.
- Consultants. Business consultants provide all kinds of professional advice to their clients, from operations to hiring recommendations. This managerial guidance could open your client to claims of errors and omissions if things go wrong with their advice.
- Life or career coaches. If your clients are life, career, or personal coaches, they spend their working time giving advice to others. These professionals may recommend a program or course of action that fails or may have dissatisfied clients with adverse results.
Communicate Often to Understand New Client Exposures
Many people changed careers or moved their businesses in new directions during the pandemic. Make sure to talk with your clients about their updated needs if they made changes. Your policyholder may now have E&O exposures they — and you — didn’t realize.
Discuss whether an errors and omissions insurance policy can help your client, then help them find the best rate and policy by shopping around. And when you need E&O coverage for your agency, get a quote from the American Agents Alliance for competitive rates.