An e & o or errors and omissions policy is specifically designed in order to protect you and your company against the financial repercussions that might occur due to a mistake that was made by the company. If an agent or a consultant gives specific advice that results in a financial loss for their client, the client has the right to demand compensation. Although this situation would not usually be covered by liability insurance, it is specifically covered by e & o insurance.
If you are ready to set up an e & o policy, there are many things that will influence the specifics of your policy. Generally, it is necessary that you visit with an insurance agent who has experience with e & o insurance. This person should understand the legal requirements and the laws and regulations relating to these policies. You will need to explain the goals of your business and the type of work that you do. You will also need to talk about the types of clients that you help and various other aspects of the business. As your insurance agent gains a deep understanding of your business, he or she will have the ability to help you craft an insurance policy that is tailored specifically to your needs and the risks involved with your business. By setting up a good e & o policy, you are taking important steps to protect your company.