What is Error & Omissions insurance?
E&O insurance is financial protection for companies against the legal liability that may arise from the financial loss of clients from the missteps of those companies performance. This could be from negligence, improper documentation, misrepresentation, or other failures to uphold their end of the contractual agreement.
Who needs it?
E&O insurance is for those companies, owners, or associations that are providing services upon which clients are investing money and assets of which they have the potential to incur loss.
How does it work?
When a claim for financial loss is brought against a company for losses incurred, the company’s E&O insurance company pays for the legal work that needs to be done, as well as any liabilities that may arise, leaving the client free to focus on other things.
What kinds of E&O insurance exist?
There are many types of error and omission insurance in existence, specific to the kinds of industries in which the companies that need them provide services. Medical service providers, legal organizations, financial services, and more have policies. If you provide condominium housing to your clients? A complete condo insurance package must include E&O insurance against any potential financial loss your clients may experience.
What are the benefits of E&O coverage?
The most immediate benefit of having the legal liability coverage that E&O insurance can bring is protection of your businesses assets, against any unforeseen and non-budgeted occurrence. However, the more important and long lasting benefit of a company with this kind of coverage is the confidence and peace of mind of knowing you and your clients are secure from the unexpected. That kind of confidence is important for the growth of your business and for establishing the kind of name recognition from those that invest in your company’s future.