If you’re in a professional services business, you could be vulnerable to a lawsuit that claims you were negligent in your work. Errors and omissions insurance can offer you protection against the consequences of these types of allegations. You might be wondering, “What is errors and omissions insurance, and am I in a business that needs it?” Here are some of the answers to that question.
What Is Errors and Omissions Insurance?
Errors and omissions insurance covers you if one of your clients holds you responsible for mistakes in a service you provided. This insurance will help you pay for your legal defense and the damages you may owe at the resolution of the lawsuit. Most policies will insure you up to a specific dollar amount.
Which Professions Benefit From This Type of Insurance?
Doctors, lawyers, accountants, engineers, IT consultants, real estate agents and mortgage brokers are among the professionals that can benefit from errors and omissions insurance. In short, any professional that offers services and might be sued for either real or perceived mistakes may need the safeguard of this type of policy.
What Steps Can You Take to Protect Your Business?
With the help of an insurance specialist, you can get coverage that is custom designed for the risks inherent to your services. Don’t settle for a generic liability policy since these can leave you vulnerable. Be proactive and get the protection you need to carry out your work with assurance.