If you are a business professional, errors and omissions insurance coverage can protect you against damages and losses arising from an inadvertent oversight or mistake. You never know when an error or omission is going to occur or when it is going to affect your business. Obtaining the necessary level of coverage that your business needs to protect your financial assets against an unexpected law suit, damages, or legal fees arising from an unintentional mistake can make all the difference between bankruptcy and solvency.
Through your insurance policy, all of your employees are covered along with you as long as they work under the same company name. Plus, you can get the insurance coverage you need tailored to your specific business. Each policy is designed to provide coverage for the typical kinds of risks associated with the business of the insured. Unexpected risks are not included in the policy, minimizing your cost. This type of protection is also known as professional liability insurance.
Any business professional can be sued for an unintentional error or omission at any time. It doesn’t take a lot to make a mistake, no matter how hard you work to prevent it. It is possible to be accused of failure to perform contracted services or negligence even when your company hasn’t made a mistake.
The cost of defending your business against a lawsuit is a major expense that can be ameliorated through the purchase of errors and omissions insurance. If you currently follow proven risk management practices to minimize the likelihood of unanticipated errors, you qualify for better rates, saving your company money on the cost of your insurance protection.