Have you ever considered what would happen if a client filed a lawsuit against your company? Most business owners do not want to think about the potential for lawsuits. You might think that it wouldn’t happen to you. After all, you run your business honestly.
Unfortunately, mistakes can happen. Unhappy clients can blame you when something does not go their way. This is why you need E&O insurance.
What Is E&O insurance?
An E&O policy or errors and omissions policy protects your company when a mistake leads to a lawsuit. If there is a contract breach or negligence on behalf of your company, you could be held liable for any financial damages.
Who Needs E&O Coverage?
Most businesses should have E&O coverage. The industries that are most prone to lawsuits include:
Whenever you have a business where you handle people’s finances, careers or health, it is critical to have an E&O policy. Other industries can also benefit from the policy.
When it comes to insuring your business, you have to make sure that you have all of the necessary coverages. The more protection that your company has, the less likely you are to go bankrupt because of a lawsuit. Don’t face potential lawsuits without adequate protection.