We all make mistakes. It’s just a part of life. When other individuals are impacted by these mistakes in the workplace, we need to make sure the company is protected. Professional Liability Insurance, also called Error and Omissions Insurance (E&O, for short), is a type of insurance for businesses that provides coverage when a company is accused of making a mistake. The mistakes could amount to inaccuracies and failures in work, missed deadlines, inadequate standard of care or breach of contract and negligent actions.
Businesses that provide a service or professional advice to consumers should include professional liability insurance or E&O insurance as part of their business policy. The coverage you need is based on the type of service you provide. Here are some examples of professions that would benefit from professional liability insurance:
As a business owner, you can face a lawsuit at any time. Professional liability insurance provides financial protection against claims of negligence, errors and unfulfilled promises. If you don’t have this type of coverage, you risk having to pay for defense costs and settlement costs if you are sued. Not to mention, the time you will have to dedicate to responding to a claim and the harm it could do to your company’s brand and reputation.
Even if it is not a contractual requirement to carry professional liability or E&O insurance, Staples & Associates can customize a policy that will protect you and your company from the risks you may face in the workforce.