Errors and Omissions Insurance Explained
When looking for the right insurance policies to protect your business, it can be easy to get confused with all of the different policies that are out there. While you may think that you need to invest in both errors & omissions and professional liability insurance, you may be surprised to find out that they are actually the same policy. Knowing why the policy is known by two names can help to make sure that you have the right amount of coverage for your needs.
Any business that provides any type of professional services, such as installation, troubleshooting, or consulting, should invest in an errors & omission (E&O) insurance policy since the services that are provided come with special liability. They can be sued for many situations, including making errors or oversights, breaching contracts, or providing incomplete work. An E&O insurance policy will provide coverage for many of the costs associated with a lawsuit, including court costs, legal defense fees, and judgements or settlements.
Even if your company did not do anything wrong, you are still at risk of being sued. Since the services that is provided is subjective, a client may simply feel that you did not meet their standards. If they are unsatisfied with your services, they have the right to sue you, which can lead to thousands of dollars in costs. If you skip out on an E&O insurance policy, you can be left paying for all the costs out of your own pocket, which could financially devastate your business.
For all of your business insurance needs, contact the insurance professionals at Gant Insurance Agency in McKinney, Texas. As an independent insurance company, we will work with you to make sure that you have the right amount of protection, all at the right price.