If you have a company, you need to consider a long list of insurance policies and decide which is best for your enterprise. Each industry has different demands, but errors and omissions insurance is perhaps on the most commonly purchased policies. What is E&O insurance? It covers your business or you as an individual if a client files a claim for a service you did or did not provide that yielded unsatisfactory results.
Who Usually Needs E&O policies?
Simply, any professional or business that offers a service can make use of these policies. The most common insurance purchasers include:
E&O may also be known as malpractice insurance. Under either name, the insurance guards against unintentional mistakes and does not typically cover purposeful errors or oversight.
When to Buy Coverage?
Like any other type of insurance, the best time to purchase a policy is before an incident occurs or is likely to occur. If you know you could be exposed, make E&O an integral part of your insurance portfolio. In fact, some client contracts will require it and for other customers, E&O is a selling point.
E&O policies can save a business from being destroyed due to court fees. Especially if you are found to be faultless, it would be unpleasant to be wiped out because of lawyer and court expenses, so what is E&O insurance? It is an enterprise’s safety net.