Mistakes Can Be Costly Without the Right Coverage. E and O Insurance Can Stem The Bleeding From An Oversight Claim
Everyone makes mistakes. Unfortunately, that doesn’t make their ramifications any less costly, especially for the variety serious enough for a court to intervene.
If you or your company provides a service for a fee, you’re susceptible errors and omissions claims. An error, basically, is a blunder, misdeed, fault or oversight. You own a freight company, for example, and you’re hired to deliver a large shipment to South Carolina in a timely fashion. But the destination becomes confused somewhere in the course of your records and the shipment ends up in North Carolina. If your company’s found to be responsible for the error, it could be liable for all costs related to it, including lost revenue.
An omission is something left out, not done or neglect. This time around, you own an ad agency. Somehow, the date of a grand-opening sale’s left out of the print advertising campaign in spite of several rounds of proofreading. Your agency could be held liable for potential revenue lost as a result of the omission.
You might assume that your business liability insurance will cover your costs against an alleged or an actual error or omission made by a staff member, but that’s not the case.
An errors and omission insurance policy, also referred to as E&O, is the only foolproof protection.
An E and O policy extends your primary business liability coverage. Without it, you’ll be held legally liable for all proven errors and omission that occurred in the course of business. Read: You’ll be responsible for compensating the party who filed the claim. Even if the allegations are found to be completely false, you could end up paying thousands in legal fees, which also would be covered by E and O insurance.
To request a quote, call Peter Green Insurance at 714-258-2800 or 888-725-7776, or click here.