subject: The Advantages Of Taking Out Errors And Omissions Insurance: [print this page] The Advantages Of Taking Out Errors And Omissions Insurance:
Errors and omissions insurance is a form of business insurance that every business should have. While law does not require it, it can save a business from ruin in many cases. Errors and omissions insurance will cover a business or company when an employee makes a mistake that results in difficulties for the client. When an employee or business owner makes a mistake that has a negative impact on the client, the client is then entitled to sue the company. A lawsuit is naturally the last thing that a business wants to deal with. Legal costs are not cheap and the resultant bad publicity is often impossible to undo.
Having error and omission insurance will protect a company from itself. Everyone makes mistakes. Even experienced employees who are trying to do their best will make mistakes from time to time. A business that operates with integrity can make unintended mistakes. How these mistakes affect a client depends in large part on the nature of the business. Some mistakes can be undone or made up for; others cannot. It is when mistakes cannot be easily undone that a company is likely to face a lawsuit.
Errors and Omissions insurance will enable a business owner to negotiate with a client that wishes to sue. Instead of dragging a case through the courts, a business will be able to settle with a client and provide compensation. The beauty of error and omission insurance is that a business will not face ruin due to an employee error. Such insurance will protect the business and enable it to carry on business as usual even if an employee makes a mistake.
Every business should take out this form of insurance. A business that does not take out E & O insurance is putting itself at great risk. The cost of this insurance varies greatly. A lot depends on the nature of the business or company. Some types of businesses are considered by insurers to be more 'risky'; this business will be required to pay more for E & O insurance. A business that wants to save money should purchase all forms of business insurance as a 'package deal'. Most insurers are quite willing to offer insurance discounts to a business that purchases a number of different polices from them.
Errors and omissions insurance is not just a nice policy to have. For most businesses, it is necessary and well worth the price. It is very easy to make a mistake; unfortunately, it is not always easy to fix a mistake or make amends. Having E & O insurance will protect the business from the inevitable fallout that comes with being sued. It can mean the difference between running a successful business for a long time and facing bankruptcy and ruin.
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