What Is Error And Omission Insurance?
Error and omission insurance is a wonderful insurance policy protecting businesses
and people against negligence, unintentional omissions and errors in the way they do business. Having this insurance policy allows people to go confidently about what they do, knowing that if someone is damaged by their actions or lack of actions or believes they are damaged, this comprehensive insurance policy will cover legal defense and damages. Almost every profession and industry needs this to protect themselves, their people and their ability to continue in business.
If a web designer is under contract to produce a web page by a certain date and completes the assignment on time, but has the wrong company name or product featured, can the web designer afford the damages? The designer may be able to correct the mistake quickly, but if the company had launched a $200,000 advertising campaign based on a web page that was not available, can the designer afford the consequences? An error and omissions insurance policy may protect this individual if the company had one. These policies understand everyone makes mistakes and mistakes can be expensive.
Many people do not realize how their actions or lack of actions can affect other individuals and businesses and the financial disasters that can occur. Runaway juries for extraordinary emotional damages to traumatized brides can hold a wedding planner failing to reserve the right space or ordering the right cake. A real estate agent who innocently forgets to notify a buyer the seller cannot move by a certain date can be held financially responsible for the buyers added expenses. Error and omission insurance will cover these expenses with the policyholder paying only the deductible.
Even when people do nothing wrong, damaged clients and innovative attorneys can bring lawsuits needing response. Many times error and omissions will cover the expensive defense cost. Attorneys hired by error omission insurance companies are professionals in the industry they are defending; having the guidance of this professional during a time of legal problems is invaluable. The insured also saves time by not having to hire an attorney.
Different industries have different needs in their error and omission policies. An agent specializing in that industry can guide a business in coverage available and needed. Each policy should be carefully reviewed for appropriate coverage. Accounting is often excluded, as billing is not part of the normal coverage needed, except for accounting services. If an accounting company purchases a policy that excludes accounting, they do not have insurance where they need.
In this world of specialized services, having error omissions insurance lets someone else take over the legal worries while the business and their people go about earning money and satisfying customers. If a mistake is made, the insurance company will handle it with competent attorneys experienced in that field.
by: Bob Roberts
Choosing Wedding Jewellery Pearl Wedding Jewellery Manufacturing Journalist TR Cutler Expands Coverage of Six Sigma Utilization with JPines Media Assistance Staying On The Right Road With Your Lorry Insurance Business Insurance in Alabama What Is Trade Credit Insurance? Top 10 Companies In Canada Insurance Industry: It Spending Predictor 2010 Motorcycle Insurance The Cheap Policy Is Not Always The Best One Importance Of Having Wedding Insurance Cheap SR22 Insurance How To Make Your Insurance Leads Pay Off - A Manual Of Benefiting From Lead Generation Companies How A Better Class Of Insurance Can Make All The Difference Business Insurance NY Tips Insurance Protect You From The Swine Flu?