subject: What In The World Is E & O Insurance? [print this page] What In The World Is E & O Insurance?
Insurance can be very confusing. At the same time, it is something that you really need to think about no matter what you are doing in your life. Different kinds of insurance can make it possible for you to live with peace and security at all times, enjoying your life with the knowledge that you have planned ahead for anything that might happenyou cannot plan for accidents, after all, since you do not know when they are going to come up, but you can plan to have a policy in place that will take care of you and your family no matter what. One type of insurance that you should consider is E & O insurance. To take some of the confusion away from this, it will be explained below.
Errors and commissions insurance is a type of policy that protects you if you make a mistake in the business world and this mistake causes someone else to lose money. Your mistake leads directly to their loss. Naturally, they are not going to be happy about this. They are going to want you to pay their loss, to reimburse them for the money that they would have if it were not for the mistake that you made. While you may even agree that the whole incident was your fault, it can be very hard to come up with this much money without an insurance policy to provide it.
One example of a situation in which this could occur is if you are a real estate agent and you accidentally sold a home for the wrong price. This could happen because of poor communication with the client, but it could also happen if you drafted the contract incorrectly. After the contract is signed, there is not much that you can do to get out of it. However, if you sold the home for a much lower price than the person wanted did, they would likely want you to make up the different. E & O insurance can pay this difference for you.
This is not needed just by people in the real estate business, however. Errors can be made in any sort of business setting that result in loss. This is just a natural part of lifeno person is perfect and never makes a mistake. However, you do not want these mistakes to be costly.
You should consider E & O insurance to give you business the best chance to grow and thrive. A loss of funds due to a mistake can be a major setback; it could even cause you to lose the business. Insurance can make sure that this does not happen to you.
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