Claims of errors and omissions (E&O) affect any number of professionals, including real estate specialists, architects and engineers, design/build contractors, attorneys, accountants, and many others. Errors can include anything from mistakes on forms, or failure to properly place bids, to miscommunications and faulty designs, among other things. Having an errors and omissions nj policy will also cover omissions such as a failure to inform or neglect of duty.
How E&O claims affect different people
For example, as an appraiser, you’ll need E&O coverage simply because you provide a professional service for people in the market to buy or sell a home. Difficulties often arise due to a seller not disclosing issues concerning the condition of the house, while buyers, feeling they’ve been deceived, may file a claim against you citing non-disclosure, among other things.
Insurance agents also face a number of concerns, such as a deal not going through, or failing to provide services or products that protect their clients’ interests. If they are accused of doing a disservice to the client they may end up in court defending their actions. After all, if a client makes a decision based on erroneous information then they are purchasing insurance options that they may have otherwise declined.
Agents and advisors should make it their point to go over all options carefully when dealing with their clients. Everyone has the right to make an informed decision before entering into an agreement or purchasing property or other items. Under no circumstances should agents hide any information that may be crucial to the decision-making process. Every agent has an obligation to be honest and act in good faith towards the buyer. This includes the duty to disclose any and all pertinent information.
Errors and omissions nj insurance, also called professional liability insurance, is designed to protect individuals or companies whenever a mistake is made, or when a client perceives this to be the fact. E&O policies will cover judgments, settlements, and defense costs even when a claim proves to be without basis. The amount of money spent to defend even a groundless lawsuit could cost upwards of tens of thousands of dollars, resulting in bankruptcy, or will at least have a huge impact on your financial bottom line.