What Your Errors and Omissions Policy Probably Doesn’t Cover

Errors and omissions insurance is a type of insurance designed to protect business from the expenses associated with a lawsuit in case you are ever accused of negligence. While e o insurance can provide companies with financial relief, there are certain things that these policies do not cover.

Understanding Your Policy

Errors and omissions insurance will not cover the expenses associated with an accident that occurs when someone gets injured on your business’ property. Instead, the costs associated with property accidents are usually covered under your business’ general liability policy.

Additionally, if a mistake is made because of a dishonest, fraudulent, or criminal action, your e o insurance will not cover the expenses that your business incurs as a result. For example, if one of your employees fails to execute a shipment that needed to go out at a certain time, but was unable to do so because they were intoxicated, your business would be held liable for the cost of defending its interests.

Protect Your Business’ Best Interests

While this form of insurance does not protect your business against every event, it is a highly beneficial form of insurance that can safeguard your business’ finances and reputation. If your business lacks an errors and omissions policy, you may want to acquire one as soon as possible to ensure your business’ best interests are protected.

This post was written by , posted on March 18, 2015 Wednesday at 7:45 pm

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