As a business owner you should consider Errors & Omissions Insurance or E&O Insurance. This insurance can help protect your business from lawsuits claiming you made a mistake in your professional services. Without E&O Insurance the cost of claims can be expensive and ultimately put your business at risk of debt and closure.
Who needs E&O Insurance?
If your business provides services to customers then your business should have E&O Insurance. Business such as those listed below:
What does E&O Insurance provide for your business?
The cost of liability claims can be very expensive resulting in the potential of closure for your business. Even if a claim is dropped the legal expenses can be steep. If a claim is followed through and your found at fault or agree to terms of settlement, you could be facing even larger out of pocket expenses. E&O Insurance helps protect your business from claims of errors in service, omissions, negligence, misrepresentation, violation of fair dealing and good faith, and inaccurate advice. This insurance can cover the following expenses if someone sues your business for making a mistake professionally, attorney fees, court costs, administrative costs, and settlement and judgements.
Is there anything E&O Insurance doesn’t cover?
Yes, there are things that are not covered by E&O Insurance. This insurance only covers claims that happened during the policy period which means claims that happened before your policy’s retroactive start date or claims that happened after your policy’s extended reporting period will not be covered. Other situations that are not covered would be bodily injury or property damage, employee injury or illness, discrimination or harassment, and illegal acts and purposeful wrongdoing.
No one is perfect and everyone makes mistakes. Even the best employees with the best risk management practices in place, mistakes will be made. You can protect your business with E&O Insurance and save your company from certain customer lawsuits. At The Insurance Center, we can provide coverage from many insurance carriers so you receive the Error and Omissions insurance for your budget and needs. Call us today (252) 637-4173 or visit us online at https://www.ticnc.com/ to discuss or review your current policy.
Source: https://www.thehartford.com/professional-liability-insurance/errors-omissions-insurance