When you are building a business, there are a number of fundamental protections that must be put into place. Among these are various types of insurance that are designed to provide financial backing for a company when it is considered to be responsible for harm or damage to a person or property. In addition to liability insurance, many companies and individuals choose to carry errors and omissions insurance, which is also sometimes called e & o insurance. This type of insurance can have many important benefits for your company and is one of the only ways to protect yourself against financial ruin if you are involved in an errors and omissions case.
When you are insured against errors and omissions, that means that you have insurance against negative repercussions that might occur as a result of a mistake on your part. For example, a real estate agent may advise clients in a certain way, only to have their advice yield a financial loss. If this were to occur, the client may decide to sue the real estate agent for the judgment error that was made. This type of situation can occur in nearly any field. That is why it is important for agents, consultants, analysts, engineers, architects, and various other professionals to invest in errors and omissions insurance. Because there is no one size fits all policy, it is also necessary that you meet with an insurance agent and design your specific policy.