.%20This%20might%20or%20might%20not%20be%20true.%20How%20do%20you%20tell%20if%20it%20is%20necessary%20for%20your%20firm?First,%20you%20need%20to%20understand%20what%20it%20is.%20Error%20omission%20will%20pay%20for%20any%20expenses%20you%20derive%20because%20of%20lawsuits%20against%20you.%20Therefore,%20should%20the%20customer...){kind=link}
E&O-Important Info You Need Before Getting E&O Coverage
E&O-Important Info You Need Before Getting E&O Coverage
A lot of businesses do not believe they need E&O insurance (error omission). This might or might not be true. How do you tell if it is necessary for your firm?
First, you need to understand what it is. Error omission will pay for any expenses you derive because of lawsuits against you. Therefore, should the customer determine that your mistake cost them money, you are on the hook for whatever the court deems necessary. In addition, sometimes you have to pay for emotional damage you cost them as well, which is often seen in medical court trials.
For some businesses, the amount they are sued for could be a low dollar figure. For others, this could be $100,000 or more. Assuming your company does not have this kind of money lying around, then getting E&O insurance might be worth it. Obviously, it is another monthly expense nobody wants, but if you are in a high-risk field, it definitely could be valuable to have.
A common excuse companies make for not getting it is that they never get sued. However, it could happen. For instance, regardless of how good a doctor you are, you could make a critical error. If you have your own practice, this could result in you being sued for a lot of money. All it takes is one court decision against you to send you into bankruptcy.
How much coverage do you need? The amount you get depends on a couple things. For one thing, you have to figure out the maximum amount a court process could cost you in both legal fees, and ultimately lawsuit payments. In addition, you might have to deal with state minimum coverage as well, as E&O insurance is required for certain professions in some states.
Make sure you do not base your buying decision entirely on the cost. Remember, you are not always comparing apples with apples. One policy might be $500 a month, whereas another might be $250, so it would seem the second would be better. However, what if it only covers you for $50,000 and you have the potential to be sued for $100,000? Then it is pointless to have it in the first place.
For this reason, choosing a company that offers decent coverage is important. In addition, you want to evaluate their financial health. If you are getting E&O coverage from a company that is on the verge of bankruptcy, you might never see any money when it comes time to file a claim.
The bottom line-you are going to be dealing with some pretty interesting customers over your years of operation. Some of them are trying to make money any way they can. Yes, claiming you cost them money is a popular get rich quick strategy. Even if they do not win the decision, the legal defense fees are often through the roof. Therefore, getting E&O coverage could be a wise choice. Auburn Tigers Vs Oregon Ducks Live Stream Tostitos Bcs Bowl 2011 Online Tv Coverage Why Secure Errors And Omissions Insurance Do I Need Pub Insurance And Should I Get An Agent Get Insurance And Drop Stress Least Coverage Requirements In Texas Florida's No-fault Insurance System Get Affordable Insurance By Gaining Little Info About The Premium RatesF What is the Coverage that Your Big Rig Insurance Policy Should Contain?1-800-513-3135 Factors To Get High Risk Semi Truck Insurance 1-800-513-3135 Low Cost Dump Truck Insurance Plan 1-800-513-3135 Start Training your Backup Coverage from Day One How Losing My Job Forced Me To Make Money Online Minimizing Costs Of Modified Semi Truck Insurance 1-800-513-3135