Everyone makes mistakes, both in life and in business. Some mistakes are minor and can be easily fixed or corrected, while others are more substantial and the effects are far-reaching. When it comes to the business world, companies are increasingly opting to purchase errors and omissions, or E&O insurance, to minimize their financial risks in the event that one of those mistakes is made. But just what is errors and omissions insurance?
This type of insurance covers you or your business in the event that a client experiences a financial loss as a result of a service you provided, or failed to appropriately provide. Virtually anyone who charges money for a professional service is at risk for E&O exposure.
What Types of Situations Does E&O Insurance Cover?
Because it applies to so many different professions, there are numerous situations where E&O insurance could come into play. Say youre a corporate events planner and you book the hotel, conference rooms and all activities for the week of June 24 instead of July 24. Everyone shows up in June ready to roll except for the business associates. Who is going to pay the professionals for your error? This is just one example of many where E&O insurance would prove tremendously useful.
Now that you know just what is errors and omissions insurance, ask yourself if you or your business is a good candidate. If youre not sure, contact an insurance agent for more information.