If you run a business where someone may hold you professionally liable for making a mistake, you need Errors and Omissions (E & O) insurance. Just like you carry business property insurance should anything happen to cause someone injury at your business, you should carry E & O insurance should anything happen because of your business.
Coverage with Errors and Omissions Insurance
When you add an E & O policy to your account, you gain coverage for lawsuits that may be brought against your business practices and performance.
Some examples of these types of lawsuits include data breaches, any omissions from disclosures, mistakes made, misleading advisement or negligent behavior.
A financial advisor who knowingly or unknowingly directs funds into disastrous stock options may be accused of poor advice or mistakes and errors. A marketing professional who represents themself as a data analyst could be accused of misleading clients to the point of ineffective services.
Even if you run your business as honestly as possible, you are still vulnerable to lawsuits. Mistakes can be made. Two sides may see the same issue differently. Protect yourself in case this happens.
What Are the Benefits of E & O?
The main benefits of E & O is having financial coverage in the case of a lawsuit. Whether these funds need to go to paying for your lawyer and their staff or directly towards a settlement, the cost of a premium is likely much lower than the amount you would be ordered to pay.
For businesses that work with extremely high-value customers and products, paying into E & O may be the only thing that keeps their business afloat in the face of a large lawsuit.
Keep in mind, the bigger the coverage you need, the higher your premiums will likely be. However, as settlement values are surely higher than you would be able to pay on your own, paying higher premiums is the smart financial decision.
Talk to R&R Property & Casualty Insurance
If you want to protect your business with Errors and Omissions Insurance, talk to R&R Property & Casualty Insurance about adding this policy to your account. Don’t leave yourself vulnerable to lawsuits regarding your business performance.
Like most insurance, enroll in Errors and Omissions Insurance before you need it. There may often be a waiting period before it can apply, so it is best to add this policy to your account as early as possible.