With the rising number of lawsuits brought against individuals and businesses, it is important that you make sure that you are protected from various financial pitfalls. There are also a number of types of protection that are becoming increasingly common among real estate agents, consultants, analysts, and other professionals. Errors and omissions insurance is one of the protections that is currently being employed by many parties. If you are looking for the right type of insurance for your business, you likely have already considered liability insurance. In addition to liability insurance, an insurance policy for errors and omissions will help to protect you in the case of accusations and lawsuits due to recommendations or advice that you gave. In order to understand whether this insurance is important for your business, it is important to understand what it is and how it works.
In the professional world, people talk to consultants and agents who are considered to be experts in their field. Although they cannot predict the future, they often give advice based on their opinion of the smartest move in a given situation. Unfortunately, if advice that you have given causes financial harm to another, that person may sue you for the money that they have lost – or that they could have earned. Errors and omissions insurance is designed for this particular situation, providing financial support and funding.