Lawsuits are common today, and while some are legitimate, many are not. That’s why you need to consider having Errors and Omissions (E&O) insurance for your business. This coverage can help protect you from the time consuming and expensive proposition of mounting a defense if a client takes you to court.
Professions that commonly purchase professional liability insurance include:
- Medical providers
- Attorneys and legal service providers
- Financial services professionals
- General contractors
Anyone providing professional advice and design solutions to clients, from architects to engineers, accountants, and physicians, could be at risk and should consider professional liability insurance.
If your company is primarily product-oriented, you could also be exposed to professional liabilities if you outsource jobs to third party vendors, or conduct business online. If you do business with large corporations within the United States or in international markets, you may be required to carry E&O insurance before you can sign a commercial services contract.
Basically, anyone providing professional advice and design solutions to a client could be at risk for a lawsuit arising out of a negligent act or failure to provide the level of advice or service your client expects. In a lawsuit like this, court fees add up quickly and protecting your assets is a must. Professional insurance will help protect you.
Please contact us to learn more about E&O insurance.
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only.