Author Topic: error and omissions ins  (Read 1499 times)

margemib

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error and omissions ins
« on: June 14, 2009, 11:15:55 AM »
Hi Michele,
What do you think about having error & omissions ins.
I have a home office and plan to do this as a small company?
I was wondering what your thoughts are on this subject.
margemib
ps I loved all your books and found them to be very helpful!
Margie Finlay CMRS

Michele

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Re: error and omissions ins
« Reply #1 on: June 14, 2009, 05:07:43 PM »
Hi Margie,
   Thank you so much for the kind words. 

Errors & Omissions insurance is definitely a good idea, especially as you grow.  Many will disagree with the next statement, but I know what it's like when you are just starting out and money is tight.  If you can't swing it when you are just starting and you have just a few smaller clients, you can wait if money is a problem.  But as you grow and add clients, especially any larger ones, you will want to look into it.

Michele
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Pay_My_Claims

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Re: error and omissions ins
« Reply #2 on: June 14, 2009, 06:55:30 PM »
Amen to that!! There is a lot that you should have or do when you start, but most people are starting their business depending on their income to build their practice. They just don't have the financial means to do it all at once. I had to start with a "free" software program. I may eventually upgrade, but right now I couldn't afford to pay the monthly fee's associated with the other ones.

PMRNC

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Re: error and omissions ins
« Reply #3 on: June 14, 2009, 10:12:45 PM »
IMO E&O is crucial, whether you are small or not is irrelevant. One lawsuit, one trip to court will cost you your business and in some instances where not protected your home, and personal assets. Without it you are simply gambling. Remember that this is the good ol US of A where anyone can take you to court...right or wrong and it costs you money. One error, whether innocent or not can cost thousands to defend.  IMO it's not worth the gamble.
Call your homeowners insurance and ask them if they can give you a discount. In some states E/O might be called other things like "Quai Tam" "Business Malpractice" "Business Liability"  so some agents might tell you they don't write those policies..explain it to them better in case they have another form of insurance similar.
I've seen billing companies fold because they couldn't defend themselves in court. In one such case the office manager (wife of their client) actually was guilty and the billing company had proof, but they dragged them into court and they couldn't afford the legal fees to defend themselves. When I first started I figured I would wait and my attitude was "well if I don't make any errors or do anything wrong I'm fine." But then I got a quick course in how the judicial system really works. Guilty or innocent you'll still pay out the ass. (excuse my french)
Linda Walker
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margemib

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Re: error and omissions ins
« Reply #4 on: June 15, 2009, 06:26:29 AM »
Thank you guys for all your opinions, it gives me food for thought.
margemib :)
Margie Finlay CMRS