Every business, big or small, is going to make an occasional mistake. The fact of the matter is that a business is not handled by just one person. You can’t always be on every job that needs to be done, and at some point, someone is going to slip up. When this happens it may or may not be a simple fix. When an angry customer is filing a claim against you, it is a great idea to already have error and omissions insurance.
This type of insurance provides coverage for when a mistake is made, either by you, an employee, or even an independent contractor, and looks like it may cost you. Error and omissions insurance covers many different kinds of companies, and providers are experienced in how to defend a business from claims from an unsatisfied customer. Not only can this save you some money, but it can also save future business. People can be extremely nervous when it comes to doing business with a company that has been in court for issues concerning their services or products.
The best way to protect your company from suffering this kind of fallout from a lawsuit is to plan ahead. Error and omissions insurance helps you be prepared for that honest mistake that may occur somewhere down the road. So, should something happen, you’ll be able to focus on what the next big idea for your company will be, instead of trying to work out damage control.