Errors and Omissions
Insurance is always there to ensure that the different needs of all clients are met. There are various needs in insurance that has necessitated the need to have different types of insurances. Amongst the many is Errors & Omissions. This is not a very popular type of insurance known to the general public for only a few people use this type of insurance.
What is Errors & Omissions Insurance?
Errors and omissions is the type of insurance that insures an individual or a company against clients who sue them for a service provided or failed to be provided. It therefore cushions you against a client who will claim that you were negligent during your course of work.
Who needs Errors & Omissions Insurance?
Given its nature, professionals in different industries are the main targets. Doctors, lawyers, architects, engineers etc, are some of the professionals who need this type of insurance. This is because the nature of their work may lead them to several accusations from unsatisfied clients.
Insuring for an E&O does not mean that a professional is bound to make errors in his line of duty but rather act as a precaution should there an accusation be raised by a client.
When is the best time to get Errors & Omissions?
It is always good to get this insurance before any loss. You never know when an error will occur and get sued for it. Therefore, the sooner you get this cover the better for your business.
What does Errors & Omissions Cover?
Depending on the insurance company you sign with, an E&O will cover the court charges and even settlement claims. There is always a limit to the cover depending on the limit you had put while signing the contract.
Reasons why a Company need Errors & Omissions
Errors can occur any time; no matter how perfect your company may be. For this reason, there is need to be safe from future loses that may arise as a result of a slight error.
It is cheaper to pay the premiums of insurance than the huge court settlements that may be awarded against you in favor of the client.
With the peace of mind that you have insurance for errors and omissions, your confidence in service delivery will be boosted since you know you are covered. This works well for your business.
It is therefore very clear that Errors & Omissions is a viable insurance that truly help people.