If you are in the business of providing services to your clients, there can be many grey areas when it comes to opinions of right and wrong. Some clients may feel as though you have not provided the service you agreed upon which can result in legal action being taken. For those who are looking to protect themselves and their businesses from the dangers of litigation concerning negligence, errors made on the job, or omissions, then considering this particular type of professional liability insurance may be the right thing to do.
What Are Errors & Omissions Insurance?
This is a kind of professional liability insurance that is based largely on the fact that everyone can make mistakes and that the penalties for those mistakes can sometimes be extremely harsh and even end your career in some cases. Whether it is largely a difference in opinion between yourself and your client or a mistake or omission that is made, this type of insurance ensures that it will not necessarily be the end of your business or your career.
Errors & omissions insurance not only covers court costs associated with the legal action that is being taken against you or your company, but it also covers the cost of settlements up to the amount which is determined in the insurance contract. This kind of insurance can be extremely beneficial to individuals and businesses alike to ensure that any legal action or claims made are taken care of.
Businesses That Can Benefit From An Errors & Omissions Insurance Policy
There is a wide range of businesses that might find the concept of errors and omissions insurance to be beneficial in protecting their business. Though many would expect that providers of professional services such as doctors, lawyers, and financial consultants would benefit from an errors & omissions policy, there is also a wider range of business types that could use this kind of liability support as well. Wedding planners, photographers, contractors, and engineers can all benefit from an errors and omissions insurance policy to protect them against unwanted legal action in relation to specific events or projects.
In professional circles, there are some regulatory authorities that require businesses to have errors & omissions insurance, particularly in the financial sector. This includes businesses such as realtors, insurance agents, investment advisors, and so on. The protection that is offered by this particular type of insurance can be invaluable in unforeseen circumstances whether the party in question is in the right or the wrong.
A Useful Tool For The Service Industry
Errors & omissions insurance is one of the most useful and valuable policies that those in the professional services industry can take. The protection that it offers provides complete peace of mind so that these service professionals can conduct their work without fear of ramifications. Whether taking an errors & omissions policy for yourself or considering coverage for a firm, the positives certainly outweigh the negatives when it comes to choosing this type of professional liability protection.