If you are a professional who offers professional services in exchange for compensation, you face just as much liability as those who sell products. However, your exposures are a bit different and have more to do with the quality of your services as opposed to the safety of your products or premises. For instance, if one of your clients is dissatisfied with the quality of your services, or if a client claims that you did not fulfill the terms of your contract in full, they could slap you with an errors and omissions lawsuit, which can be costly and time-consuming. To prevent adverse financial implications in the event of such a lawsuit, invest in errors and omissions insurance in NJ.
E&O lawsuits can be financially devastating in a number of ways. For one, the cost of litigation and an attorney can run well into the tens of thousands of dollars and can be more or less depending on how long the lawsuit takes to settle. If you lose, and if you don’t have E&O insurance, you may be forced to pay the settlement out of pocket, which can be business-breaking in and of itself. Finally, you need to consider the cost of business interruption caused by a lawsuit. Errors and omissions insurance in NJ can help you cover the cost of everything from attorney fees to the final judgment, and even help cover the cost of business interruption. For these reasons, E&O insurance should be a priority.