Any business and/or individual who have clients that they advise also have risks and exposures pertaining to charges of errors and omissions (E&O) in the dispensing of professional information and services. Perhaps the most difficult job an insurance agent may have is convincing you that this is the case. However, if you’re ever the victim of a claim you’ll be relieved that you purchased errors and omissions nj insurance to cover your company, or yourself as an individual.
Even when you do not detect that a problem exists, you cannot be certain that this is the case. Clients don’t always voice their frustrations, but in the event that a client of yours holds you responsible for a service you provided, or failed to provide, then you’ll need coverage to deal with any claim that arises.
Why People File E&O Claims
People tend to file claims related to e&o often as a result of the fact that the services rendered did not have the expected or promised outcome. For doctors, dentists, and chiropractors, the term used for this coverage is malpractice insurance. For lawyers, accountants, architects or engineers, it is generally referred to as professional liability coverage.
No matter what you call it, it‘s an important coverage to have if you run the risk of being sued in your particular chosen profession. If it is perceived that you somehow caused a financial loss, or damaged to the reputation of someone you’re representing then it might happen to you.
What Exactly Does E&O Cover?
Most policies cover judgments, settlements and related defense costs. Even if allegations are found to be without merit, as is sometimes the case, there’s still significant money being spent to defend the lawsuit. This oftentimes cripples a mid-sized company, or can bankrupt a smaller company or individual altogether. It has even been known to have a lasting effect on the bottom line of much larger companies.
If you’re in the service industry and can anticipate having these types of exposures, make e&o insurance part of your portfolio. Also realize that many clients require insurance to be in place prior to engaging in any contracted work.
Listen, everyone in business makes mistakes now and then. Even with the best employees working for you, implementing the best risk management practices, mistakes are going to occur. Protect your interest and contact an agent who specializes in errors and omissions nj insurance today.