In an increasingly litigious environment, business owners can not afford to leave themselves open to lawsuits arising from the inevitable—and potentially costly—human error. Should that error create defects in the product or service you deliver to a customer, you could be held liable for any fines or other monetary damages your customer may incur as a result.
Errors And Omissions Insurance Coverage
Errors and omissions insurance, or E&O insurance, is a professional liability policy which protect companies and their staff against claims derived from inadequate work and/or negligence. Examples of coverage include:
- Temporary Employees
- Personal Injury
- Claims From Services Rendered In The Past
- Copyright Infringement
Businesses in the consulting or service providing industries generally are required to acquire errors and omissions insurance to operate. Examples of businesses/professions within these industries include:
- Investment Advisors
- Financial Planners
- Insurance Brokers
- Wedding Planners
- Real Estate Agents
An errors and omissions policy will usually cover any legal fees or costs associated with the claim and either all or a majority of the settlement.