Are you a company or small business owner? Does your type of work put you at risk of losing your financial stability due to legal action taken by your clients? All kinds of professionals face these types of risks every day. If you could answer yes to those questions, you may be interested in errors and omission insurance. E&O insurance is a unique type of protection that can offer financial assistance in the case of legal action taken against your business as the result of a mistake made by your employees. This article will describe some of the benefits of errors and omission insurance.
Nearly every professional business faces liabilities concerning errors and omission. An innocent mistake made in contracts, transactions, or other professional services can cause unintended financial harm to your clients. They have the right to file legal claims against your business, which is why E&O insurance is such a valuable service to have. You can never be one hundred percent sure that your professional services are error-free, so it’s smart to be prepared for any legal action that may be taken against your business in the event of a mistake. Even if the case is eventually resolved in your favor, the legal fees can really add up. Your company may also suffer other types of losses due to the time and resources that must be devoted to the legal process. In such cases, E&O insurance can really help.