Do you know what E&O or errors and omissions insurance is all about? Errors and omission is a type of insurance that covers your company or you individually from clients that deem you liable for a service that you or the company performed or catastrophically performed a service that have gone out wrong.
As for lawyers, accountants, architects or engineers, it may perhaps be called professional liability. Whatever you call it, it protects you or your company for errors and omissions that you or the company has done.
The majority of errors and omissions (E&O) policies include judgments, settlements and defense expenses. Even if the accusations are found to be unjustified, a lot of money is needed to be able to defend the court case. These kinds of lawsuits are very capable of bankrupting a small company or an individual plus it has a lasting effect on the outcome of larger companies.
People who acquire the services of E&O insurance are most likely doctors, architects, engineers, accountants and many more. But other people or companies such as advertising agencies or commercial printers, web hosting companies to wedding planners, people who offer their services for a certain fee should know that they should as well obtain E&O insurance.
In general, E&O insurance is not compulsory at the basis of every insurance group of a company or a firm. But as a rule, it would be most excellent to obtain the coverage for your sake and the company’s as well.
Companies who deal with customers or clients should have this coverage. Why? Well, simply because nobody is perfect, everybody makes mistakes. Even the most excellent employees that you hired are bound to make mistakes.
If a wedding planner reserved the reception ball, the caterers, the flowers, the band, and the dancers on Feb 20 instead of Feb 23, and everyone shows up on the given date of the invitation card but on the wrong date, who gets to pay for that unwise mistake? If a moving company delivers the goods and some of these good were damaged due to carelessness, who gets to pay for the loss of the client?
If you or the company would not purchase E&O insurance, there will be a very big financial risk for you or the company. In addition to that, these kinds of losses are not included in general liability policy. And even if it is not your fault, there will still be fees to be paid and not to mention the wasted time.
Geroge Bay has worked with professionals in their fields to help prevent Errors and Omissions law suits. The right insurance is an important factor in helping to prevent costly law suits. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.
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