The right insurance protects companies, like a net under a high wire. One type of specialized professional liability coverage is Errors and Omissions insurance, often called E&O insurance. This type of policy protects individuals and businesses against claims of negligence or inadequate work, and it offers multiple benefits.
Who Needs E&O Insurance?
Anyone holding themselves out as an expert in a particular field should consider E&O plans. Even those who provide advice in a particular field may have liability risks. Examples of such careers include doctors, psychologists, architects, computer specialists, and even yoga teachers or Pilates instructors.
Benefits of E&O Insurance
E&O policies offer multiple advantages, including:
- They pay legal costs during litigation.
- They protect your business should an employee knowingly or accidentally breach a contract.
- They are a valuable form of proactive protection for professions dealing directly with clients and consumers.
Carrying this type of policy indicates you are a responsible professional. It shows you take your work seriously and stand behind it. This could win you clients.
Setting up an office, hiring employees, and preparing operational plans are part of responsible business ownership, but so is protecting your assets. The right E&O coverage can help your business survive should a lawsuit be filed against you or any of your employees.