Errors and omissions insurance (E&O) is a type of professional liability insurance that protects businesses from claims of negligence or inadequate work. It is designed to protect businesses from financial losses due to mistakes or oversights made by employees or contractors.
E&O insurance is important for any business that provides professional services, such as consulting, accounting, legal advice, or IT services. It can help protect businesses from costly lawsuits and other financial losses due to errors or omissions.
E&O insurance covers a wide range of potential risks, including negligence, misrepresentation, breach of contract, and failure to perform. It can also provide coverage for legal fees and other costs associated with defending a claim.
When selecting an E&O policy, it is important to consider the type of services your business provides and the potential risks associated with those services. It is also important to understand the limits of coverage and the exclusions that may apply.
E&O insurance can be a valuable tool for protecting your business from financial losses due to errors or omissions. It is important to understand the coverage and exclusions of your policy and to select a policy that meets the needs of your business. With the right coverage in place, you can rest assured that your business is protected from potential financial losses due to mistakes or oversights.