When working in a business that deals with other people, especially businesses like medical practice, law firms, or insurance, many people may be familiar with error omission insurance. Also called E & O insurance, this type of insurance assists a person in a defense should some sort of mistake occur, causing some sort of financial loss or so against another person, and the client decides to sue. When it comes down to it, mistakes are bound to happen. It just depends on how serious the mistake is.
Error omission insurance is a sort of protection should a mistake happen. These mistakes, should they cause monetary harm to someone, could lead to a lawsuit. Instead of having to bear the entire cost of defending in a lawsuit, though, E & O insurance helps to mitigate some of that cost, so long as it is covered in the policy. Even if in the end the professional wins the case, the whole experience may cost thousands of dollars. With insurance in place, a person usually needs only to pay the deductible, and then the insurance kicks in and covers the rest of the cost. This can save a lot of money in the end.
If a person gives services in whatever industry—medical, law, or insurance—having error omission insurance can be invaluable. Once can never tell when it just might come in handy.