An Errors and Omissions insurance policy provides you and your business with coverage against another entity or client who might hold you responsible for provided (or failed to be provided) services that did not have the expected or promised outcomes and that resulted in financial loss for the client. The coverage of E&O includes judgments, settlements and defense costs.
If you are a doctor, lawyer, accountant, an architect, or simply in the business of providing a service for a fee, you probably know how important it is to invest of an E&O Insurance Policy. Just think what would happen if for some reason your service delivery did not meet the deadline or your client’s expectations and if as a result, your client had to incur a financial loss.
Even with the best strategy and excellent employees, everyone makes mistakes at one point or another. We are all far from being perfect. An E&O Insurance policy protects you against the risk of incurring a serious financial loss as a result to a simple mistake.
It will be too late to invest in such insurance after the risk happens. As with any insurance, the best time to purchase an E&O Insurance Policy is before the risk occurs. Reality is that being in the service industry, exposure will happen sooner or later. E&O insurance should be included as part of your insurance portfolio since day one. Once you obtain errors and omissions insurance use the coverage to strengthen your presentation especially to a new prospect. This coverage represents that you respect your prospects risks as well as your own.
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