Do You Need an E&O Policy?

In a world where a successful lawsuit might mean instant wealth for some and financial ruin for others, it is no surprise that the insurance industry is replete with packages and policies intent on protecting against all manner of liabilities. Although you may be familiar with general liability and property concerns, you might also need to consider E&O insurance. Those looking for a policy containing errors and omissions in NJ might fall into the following categories:

  • Consultants
  • Architects
  • Social Workers
  • Home Health Aides
  • Nutritionists/Dieticians
  • Accountants
  • Occupational Therapists
  • Psychologists
  • Insurance Agents
  • Therapists

An E&O policy protects a professional in the event that a claim of negligence or inadequate work is brought forward. These lawsuits can be as specific as direct claims of ignorance concerning operations or they could be more general with regard to an opinion of the services rendered. In either case, this policy would provide financial services to assist with the legal battle and attorney fees, as well as maximum funds that would be paid, should the case be lost to the client.

Some states require small business owners to carry specific types of insurance, but errors and omissions in NJ is an optional coverage. However, the benefit it could provide in the event of a claim and court proceeding makes it well worth the purchase.