It’s not about your professionalism, training, or years of experience. It’s about human nature. Mistakes happen to the best of us, no matter how experienced.
The simplest clerical error or proofreading mistake (even one made by a trainee) can cost you, especially if it results in financial loss or damage to the reputation of one of your customers.
That’s why it’s important to understand the extent of your business liability insurance since it only protects your operation against bodily injury, property damage, or advertising injury.
But what happens when you, one of your employees, or a vendor fails to catch something that your customer doesn’t miss, and they hold you responsible?
They can not only refuse to pay, they may also sue you for damages.
But with an errors and omissions (E&O) insurance policy, you’ll enjoy specialized liability protection against losses not covered by traditional business insurance.
If your service is possible to be done incorrectly or late, and it costs your client money or harms their reputation, you need to investigate E&O.
Errors and omissions protects you from claims in the event a customer or client sues your service business for negligent acts, errors or omissions occurring during business activities, and which could potentially result in a financial loss for the client.
Errors and omissions insurance policies usually cover the business owner, both salaried and hourly employees, and subcontractors working on behalf of the business.
Errors and omissions insurance can be customized to meet your specific needs, no matter what your business or industry. Real estate agents face different risks than printing companies, but both have potential to impact their customers' lives and livelihoods if a mistake occurs.
Benefits of a specialized E&O policy may also include: