As most professionals know, errors and omissions (E&O) is the insurance that covers your company, or you individually, in the event that a client suffers financial damage and holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results.
Here in New Jersey the list of people who can benefit from having New Jersey EO insurance are doctors, lawyers, accountants, architects, engineers, which are just a few obvious professions. However, many other individuals ranging from advertising agencies to commercial printers, Web hosting companies to real estate agents also need this policy in place.
If you’re in the business of providing a service to your clients for a fee, you will likely experience exposures regarding errors or mistakes you might make. For example, New Jersey real estate agents and brokers face a long list of exposures to malpractice claims, including, failure to disclose material facts, failure to inspect property or to recommend a reasonable price, or failing to provide documentation or reports, and this is just the short list.
For many professionals, this type of coverage is often referred to as professional liability insurance. Whatever name you call it, it’s coverage that protects you financially and something no one with these types of exposures can really afford to be without.
Even if the allegations are found to be groundless, thousands of dollars may be needed to defend against a lawsuit. This can bankrupt smaller companies or individuals and have a devastating effect on the bottom line of larger companies. Having New Jersey EO insurance coverage provides protection for you in the event that an error or omission on your part has caused a financial loss for your client. You may want to consider what will happen if the service you provide is not done correctly or on time, and it brings harm to the reputation of your client.
By not purchasing a professional liability policy a company can be taking a serious financial risk since these types of losses are not covered under a general liability policy. As with any insurance, the best time to buy a New Jersey EO insurance policy is before the risk is taken. If you are in the service industry and you know you will have these exposures, make this policy a part of your insurance portfolio.