As the old adage says, to err is human. Well if that’s the case, then it stands to reason that it is only a matter of time until one makes a business mistake that costs the company dearly. So while one might be wondering about cutting operating expenses by reducing E&O insurance costs and other fees, for example, it could well be a case of being penny wise and pound foolish.
This coverage goes beyond what General Liability coverage provides to offer protection for an employer and his or her workers as they toil to conduct regular business activities and fulfill the obligations of contracts and orders they have with various clients. Should they be sued by a customer who alleges that services rendered were not as promised, had a key omission, were otherwise flawed, or caused financial damage to the customer, the policy offers a variety of coverage for everything from legal defense and other court costs to paying for judgments rendered if the case is lost. Even if a lawsuit is determined to be without merit and is thrown out of court, the policy covers the costs associated with mounting a defense—which could amount to many thousands of dollars.
Look for a trusted partner for guidance
To obtain E&O coverage, it is important to work with a professional insurance agent who has experience and knowledge in this type of business policy. These experts will craft a plan that is based on a business’ unique risks and reflects any particular trends and exposures that are specific to the industry, the clientele, the nature of business, and the location. Service-oriented firms such as legal, banking, accounting, and real estate are prime candidates for this type of coverage, and because they are often judged to have “deep pockets,” those who file lawsuits against them tend to go for a big payoff. Having to pay a judgment out of pocket could significantly damage a company, or even cause it to close its doors for good.
Don’t think a lawsuit can’t happen
Talk to an agent today about the firm’s needs for this important coverage, and to learn more about E&O insurance costs. The premiums the company will pay will be insignificant in the event of a lawsuit.