Do You Need Error and Omission Insurance?
If you own a business and you have a standard business package without error and omission insurance, you may be putting your company at risk. You never know when a transaction may go bad or when one of your products hurts someone. But just giving advice can bring a case against you, and this is why it's imperative that you speak to your business insurance provider about getting the full insurance coverage you need.
Why Leave Error and Omission Insurance Out?
If you left error and omission insurance out of your general business insurance package, you're not alone. Many packages don't come with it standard and you have to actually ask for it to be bundled. Of course in states where cases against error and omission insurance are commonplace, you may see the insurance policy included with the standard business bundle packages. But in most cases, you will have to ask for it separately, which is a travesty.
The Standard Business Error and Omission Insurance Package
When you first bought your insurance package, did the insurance agent pour over your business and your dealings with clients and customers, studying every little bit until he formed a concrete understanding of your industry and processes? Or did the agent plug some data into a computer only to hand you a printout that includes all the recommended policies according to what other like-business owners purchased? The latter is an awful way to purchase business insurance. What your competitor needs, you may not necessarily need. A business insurance policy should be customized with every bit of risk assessed. This requires the agent to study the business from top to bottom. It also requires the agent to study the business processes to make sure the company isn't doing anything to bring a case against it.
But most of all, a good agent will make sure that your company is protected from error and omission insurance at every turn. Everything you do in business is related to clients and customers in some way. Without them, you wouldn't be in the business you're in. But in doing business with those customers, you walk a scary line every time where one wrong move could bring devastating financial consequences. In fact, one wrong lawsuit could shut your business down for good.
The alternative is purchasing the error and omission insurance package up front, but only after the insurance agent has gone over the business thoroughly to make sure all risk is assessed. Once your business has the umbrella of error and omission hanging over it, your business will be ready for anything that may come.
If a customer or client brings a case against your company and you have adequate Error and Omission Insurance in place, you'll be able to afford your legal costs, potential payouts, court fees and more. This means you'll be able to carry on with your business without a care in the world while the insurance company takes care of everything. If nothing else, you should secure error and omission insurance for the stress-relief alone. Call now for a free Error and Omission Insurance quote at 212-392-4712.