The Ins and Outs of Errors and Omissions Insurance
Errors and omissions (E&O) insurance protects businesses and individuals from being sued for services they rendered inadequately. In some industries it is commonly referred to as malpractice insurance, but E&O insurance is not limited to industries where malpractice insurance is standard (e.g. law, medicine, engineering). E&O insurance is a business insurance that protects any business or individual that provides services.
What E&O Insurance Covers
E&O insurance provides coverage for when an error or omission on a business’ part leads to the financial loss of that business’ client. Most policies will pay for defense costs, settlements and judgments when a service was not properly rendered.
Why E&O Insurance?
Many professionals are required by law to have E&O insurance. Even businesses and professionals that are not legally required to carry this insurance, though, may want to consider purchasing it. The legal fees and settlements associated with an error or omissions case will bankrupt most small businesses. E&O insurance makes sure that a business can survive such a lawsuit.
If E&O insurance is something your business or you, yourself, do not have, contact Agape Brokers Insurance Agency. An agent will be glad to help you understand how E&O insurance in California works and what it covers.
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