New Jersey Errors and Omissions Insurance
Get a full analysis of New Jersey errors and omissions insurance costs, coverage, and companies.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Find the Best Errors and Omissions Insurance Options in New Jersey
New Jersey has over 952,000 small businesses, representing 99.6% of the state's businesses. If you own a small business in New Jersey, you have numerous business insurance needs that can be even more complex if you provide professional services.
Certain businesses need errors and omissions insurance, which is a type of liability coverage that is not included in a basic commercial general liability policy and protects you from errors you may make while providing certain types of services.
Fortunately, an independent insurance agent in your area can help you learn about errors and omissions insurance and find you the coverage you need.
What Are the Best Errors and Omissions Insurance Companies in New Jersey?
There are a lot of options for errors and omissions insurance in New Jersey. We recommend the following as one of the best business insurance companies in New Jersey.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today the company offers a flexible, multi-line range of coverages designed to meet the needs of any business, regardless of size or industry.
An independent insurance agent in your area can help you learn more about these and other New Jersey errors and omissions insurance companies. A local agent can help you get competitive quotes for the coverage that fits your needs.
What Is Errors and Omissions Insurance?
Errors and omissions insurance is a type of business liability insurance that is necessary for certain individuals and companies that provide professional services. It is also referred to as professional liability insurance.
In the case of errors and omissions insurance, “professionals” are considered to be those who have special knowledge or skill in a certain area and who use that skill to provide advice and services to others. Traditionally, doctors, lawyers, architects, engineers, and accountants were considered to be “professionals” for insurance purposes. But as lawsuits related to allegedly faulty business services have proliferated, errors and omissions insurance is becoming equally important for a wide variety of professions.
Today, New Jersey businesses, including advertising and public relations firms, internet service providers, web hosting companies, IT firms, and many more, may need errors and omissions insurance. Actuaries, real estate agents, insurance agents, appraisers, mortgage and securities brokers, business consultants, and many other types of professionals also often purchase professional liability insurance to protect their livelihoods if they’re accused of negligence.
An independent insurance agent can help you understand if you need New Jersey errors and omissions insurance to protect your business.
What Does Errors and Omissions Insurance Cover in New Jersey?
Most businesses in New Jersey will have a commercial general liability policy as part of their basic business insurance program. This policy offers broad coverage for a wide range of lawsuits, but it does not cover claims related to errors or negligence in professional services.
New Jersey errors and omissions insurance eliminates this gap in coverage. It covers professionals, their partners, their employees, and the partnership or corporation for damages caused by providing or failing to provide professional services. This can include instances of providing erroneous advice, making errors in the services you provide, or even if a client loses money due to an act of negligence or an omission on your part.
If you provide professional advice and services, errors and omissions insurance protects you in cases of actual or alleged errors, loss of client data, negligent oversell, undelivered results, work mistakes, system failure, or making misleading statements.
Errors and omissions insurance covers the costs associated with your legal defense if you are sued, as well as any judgments that are rendered against you or settlements that you must pay to the injured party. Most errors and omissions policies can be customized for your particular area of expertise and the risks you face.
Contact a local independent insurance agent for information about the types of coverage offered by errors and omissions insurance in New Jersey.
What's Not Covered by Errors and Omissions Insurance in New Jersey?
Errors and omissions policies and their specific exclusions will vary depending on your profession and your insurance carrier.
It is important to remember that New Jersey errors and omissions coverage is designed to protect you from liability claims that are directly related to the provision of professional services and any resulting financial loss for a client. Losses that are covered under some other type of insurance policy (e.g., general liability insurance, commercial auto insurance, or workers’ compensation insurance) are not covered by errors and omissions insurance.
What’s more, errors and omissions insurance in New Jersey usually excludes coverage for:
- Criminal, fraudulent, or malicious acts
- Bodily injury or property damage (except in the case of medical malpractice)
- Workers’ compensation claims
- Punitive damages
An independent insurance agent in New Jersey can help you understand the limitations of your errors and omissions coverage.
What Does Errors and Omissions Insurance Cost in New Jersey?
The cost of errors and omissions insurance in New Jersey depends on a variety of risk factors that are unique to your business, including your industry, your coverage limits, your location, how many employees you have, your experience in your profession, and your claims history.
These factors may impact your rates in the following ways:
- Industry risk: The higher the risk for your industry, the higher your premiums will be. Consider the risks faced by an accountant versus an advertising agency.
- Coverage limits: Policy limits vary and can be anywhere from $250,000 to $2 million. The higher the policy limits, the higher your premiums will be.
- Your location: If you’re located in an area with a high claims rate, you may pay more for coverage.
- Number of employees: The more employees you have, the higher your risk for an errors and omissions claim. Professional services firms with more employees may pay more for coverage than a similar firm with fewer employees.
- Professional experience: Experienced professionals may pay less for errors and omissions insurance than new businesses or individuals new to their profession.
- Your claims history: If you have a history of errors and omissions claims, your insurance premiums will likely be higher.
An independent insurance agent can help you find affordable errors and omissions insurance in New Jersey.
How to Find the Best Errors and Omissions Insurance Quotes in New Jersey
Errors and omissions insurance is very complex and requires the help of an insurance professional with specialized knowledge and experience. An independent insurance agent in New Jersey can make sure your errors and omissions policy is tailored to the risks you face and can examine your entire business insurance program to recommend top-quality, comprehensive coverage.
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New Jersey Errors and Omissions Insurance FAQs
Errors and omissions insurance is a type of business liability insurance that is necessary for certain individuals and companies that provide professional services. It is also referred to as professional liability insurance.
Errors and omissions insurance covers professionals, their partners, their employees, and the partnership or corporation for damages caused by providing or failing to provide professional services. This can include instances of providing erroneous advice, making errors in the services you provide, or even if a client loses money due to an act of negligence or an omission on your part.
Specific types of errors or omissions that can be covered include:
- Actual or alleged errors
- Loss of client data
- Negligent oversell
- Undelivered results
- Work mistakes
- System failure
- Making misleading statements
Errors and omissions insurance covers the costs associated with your legal defense if you are sued, as well as any judgments that are rendered against you or settlements that you must pay to the injured party.
The cost of errors and omissions insurance in New Jersey depends on a variety of risk factors that are unique to your business, including your industry, your coverage limits, your location, how many employees you have, your experience in your profession, and your claims history.
We recommend Liberty Mutual as one of the best errors and omissions insurance companies in New Jersey. The company is highly rated for offering broad coverage, top-notch customer service, and a variety of affordable options.
Comparison shopping is the best way to make sure you're getting the best errors and omissions insurance for your needs and budget.
A local independent insurance agent can help you find competitively priced New Jersey business insurance. Contact an agent in your area to begin comparing customized quotes.
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