For certain types of businesses in the Garden State, NJ errors and omissions policies make perfect sense as a way of taking preventive measures against damages, rather than waiting for an issue to develop and then deciding to purchase protection. After all, a seemingly simple error can have devastating consequences and can end up costing you a fortune, whereas you can properly protect your business by having coverage with a reasonable premium in place.
Errors & Omissions (E&O) insurance is a practical part of your insurance portfolio, the type of coverage for professionals and businesses that need to protect their companies against claims with regards to their work performance.
Who needs E&O insurance?
You are a likely candidate for an E&O Policy if you are in any of the following lines of work:
- Event Manager
- Many types of organizations
Every professional and company is likely to make a mistake during the course of providing their services. Although unintentional, there is the likelihood that a client may decide to sue you for any substantial loss of time and money resulting from the error. In many cases you may be getting sued for things that were not in your control but you may still be expected to compensate the other party or, at the very least present your case in court.
This is where NJ errors and omissions insurance can help you to save time and money.
This coverage will be far less expensive than any settlement against you. For example, if an event planner were to book a venue on the wrong date, the event planner would likely end up having to compensate the property owners and workers for any lost time and revenues. Declining to provide compensation, apart from getting you entangled in a lawsuit, could cause considerable damage to your business reputation as well.
When a potential client is made aware of any lawsuits pending against you, or a former client makes it known that your services are unreliable, you run the risk of losing business. Speak to an agent about obtaining the type of protection you can truly benefit from!