subject: Why Get An Errors and Omissions Insurance Policy [print this page] Why Get An Errors and Omissions Insurance Policy
Contractors often wonder if they still need to get an insurance policy. For self-employed contractors, they sometimes do not see the need to avail of errors and omissions insurance policy. But the reality of life is always not under a person's control. There are things that can happen any time which can sometimes prevent you from doing your job properly. It is not enough to rely on one's self-confidence to carry out all the tasks flawlessly without thinking of inevitable things that could happens. It is wise for a contractor to be ready at all times. This possibility is not going to affect you when you have errors and omissions insurance policy.
The main purpose of an errors and omissions insurance policy is to protect a contractor or agent at times when there are inevitable occurrences like negligent actions, errors and omissions. A contractor can be a single company whose insurance coverage can also extend to its workers, members, partners, executive officers, and directors. However, the nature of the coverage is under the commercial general liability policy. It only covers the loopholes in the other insurance coverage. For this reason , this kind of insurance can surely provide a contractor, in this case, a company, more protection and benefits against errors and loopholes. Furthermore, if a contractor is just a single person, he or she can not avoid committing mistakes while doing a task. For instance, there are occasions when an urgent request to change a construction material will not be delivered on time. As a result, it can the timeline for the completion of a certain project. But if you have an insurance policy, you as a contractor can be protected by a warranty program which covers major expenses.
Meanwhile, there are other types of insurance policies which help protect contractors. One of these is the commercial general liability policy. The first part of this policy covers all the actual damages to people and properties. It also covers all kinds of legal expenses which involve solving unjustified claims and other related issues. There are so many customers who are filing legal cases and the jury rewards keep getting bigger and bigger. This kind of insurance policy will take the responsibility of paying all the awards and legal payments in defending the claims. This is done in exchange of all the paid premiums. In addition to that, a worker's compensation is for the sole benefit of all the employees of the company. Commercial, auto, and truck insurance policies all protect the vehicles used during the course of the business. A special insurance also covers the expenses for the tools and equipments if these are lost due to robbery. The insurance company manages and takes all the financial responsibilities not covered by a contractor.
If you have an errors and omissions insurance policy, you will no longer worry about being disrupted in your business operation. As an employed or self- employed contractor, you are already protected from big expenses once a single mistake happens during your working hours.
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