Even if your business is already established and is running smoothly, this is not a complete guarantee for your business not to face lawsuits. With just a perfect accusation plotted towards your company, everything you’ve worked for can be gone in an instant and you’ll be left with a ruined reputation and financial turmoil. This is the reason why Errors and Omission or E&O policy (also known as professional liability insurance) is in place.
You might ask if E&O is really necessary? Here is an insight. The National Association of Professional Agents says that at one point in their entire profession one out of seven businesses will have an E&O claim and the average expenditure to settle such claim amounts to roughly $16,000. As you decide whether or not to purchase an E&O policy, here are some central matters to consider. Continue reading