What Is Meant by Errors and Omissions Insurance

Errors and omissions in New York are an unfortunate fact of any business. Even the best workers can make mistakes from time to time. While businesses should strive to avoid these accidents whenever possible, it is also essential that they have adequate insurance coverage in the event that an error or omission does cause significant injury to a customer or employee.

What is Errors and Omissions Insurance

In the event that someone affected by an error or omission takes the company to court over the issue, errors and omissions insurance covers legal costs as well as the settlement paid to the individual in questions. Errors and omissions include mistakes that occur during the course of normal business, especially those that have some kind of detrimental effect on a customer or employee of the business.

What Errors and Omissions Insurance Covers

When an accident happens, the affected party may choose to take the business to court for damages. Regardless of the outcome of the trial, legal and associated costs can add up. Errors and omissions insurance helps cover the initial cost of retaining a lawyer, as well as an damages the court orders the business to pay.

Errors and omissions in New York is an essential component of all businesses. Make sure your company has adequate coverage so you can rest easy in the event of a workplace mistake.