Errors and omissions insurance is similar to liability insurance, but comprises slightly different parameters. Also referred to as e & o insurance, this type of insurance is designed to protect professionals financially when they undergo accusations for the advice that they have given. If a person follows the advice of a professional consultant, for example, and that advice results in a financial loss, the person can sue their consultant for the money that they lost. This type of insurance is important for professionals in various careers, including real estate, medicine, accounting, appraising, and quality control, among many other things.
Because e & o insurance is crucial for so many different types of businesses, it is important that you set up a policy that has been designed specifically to meet your needs. In order to do this, it is necessary to choose an insurance company that understands the laws and requirements related to errors and omissions. Also, you will need to help your insurance agent understand how your business works, who your clients are, and the types of situations in which this insurance might be needed. With this information, the agent will be able to help you form an insurance policy that will fit your needs. When you buy a good e & o policy, you can have peace of mind in knowing that you are protected from many financial and legal repercussions as you run your business.