subject: Understanding Errors and Omissions Insurance [print this page] Understanding Errors and Omissions Insurance
Many businesses and companies in the country today include errors and omissions insurance as part of their professional insurance coverage to protect themselves from possible law suits by their clients in the event mistakes are made by the company that results in negative repercussions on their clients. Errors and omissions insurance coverage is common for companies to obtain, as they never can tell when a customer will become dissatisfied with their service or will accuse the company of committing serious mistakes in the course of their service resulting in the customer taking the company to court for damages. Without this liability coverage, your company could face enormous losses both through paying for lawyer fees and/or court costs as well as possible damage claims to your former client. An errors and omissions coverage is specifically to cover losses incurred by your clients due to you or your company's mistakes or failures in supplying the proper service contracted by the customer. Even though your company may not have purposely failed or erred, your client still has the right to file litigation against you if he or she feels they have been wronged, whether intentional or not, and that as a result of your mistakes, they have suffered monetary losses. Because many customers have chosen to follow through on this right, it is important that companies seriously consider acquiring this insurance as a method of self-protection and self-preservation. It can be very devastating for a business or company to face a lawsuit without proper insurance protection because if they should lose the case, the money they are forced to pay their former customer could be substantial enough to close down their business. This may happen in extreme cases, but it is not worth taking the risk of it happening to your business when you least expect it. In milder cases, having errors and omissions insurance could save your company the embarrassment of going to trial or being publicly exposed, as the insurance company could try to negotiate the claim with the customer out of court and make a private settlement before it comes out in the open. If your company or business firm is eligible for an errors and omissions policy, which most all professional services companies are, and then it just makes good business sense to acquire the coverage to protect your company against any eventuality. Researching online you can find the names of reliable insurance firms that offer this coverage to obtain their services. Online viewing to gather information about errors and omissions insurance is fast and efficient and you will be able to compare the services and possibilities of various companies before deciding which will give you the best coverage at the best price.
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