To protect your business, you require a variety of insurance policies. If you think that your general liability insurance covers all types of lawsuits, you could be in store for an unfortunate surprise. Errors & omissions liability insurance is also necessary to protect your business.
What Is E&O Insurance?
E&O policies protect against errors and omissions. For example, if you are a mortgage broker and a lender loses money because he or she claims that you failed to vet a borrower, then E&O coverage would help pay the defense costs and settlement. Mistakes do happen but when it affects a client, you could face litigation.
Who Needs E&O Insurance?
Most companies should consider an errors & omissions policy. For companies who give financial advice, work in real estate or the legal field, the risk is much higher than in other industries. Examples of professions who should have E&O insurance include:
- Real estate agents
- Financial advisors
If a mistake on your behalf or an alleged mistake could cause someone to lose money, then E&O coverage is a protection you can’t afford to go without.
Without an E&O policy, your company would have to pay all legal fees and settlement costs associated with lawsuits against your company. A fair policy covers the damages and the costs of defending your company against lawsuits.