CAN YOUR BUSINESS AFFORD MISTAKES?

CAN YOUR BUSINESS AFFORD MISTAKES?

            While we all make honest mistakes from time to time, a mistake made by a business (a small business, in particular) can pave the way to financial ruin. To protect businesses that provide professional services from claims of negligence or failure to perform their financial duties, there is “Errors & Omissions” (E&O) coverage. Otherwise known as “professional liability coverage,” this type of business insurance protects architects, lawyers, and other professionals from claims that they made mistakes, failed in their “duty of care,” or gave incorrect advice. Even if lawsuits prove groundless, E&O insurance pays the policyholders’ legal defense costs and also protects against personal injury claims (e.g., libel or slander) that may arise while rendering their professional services.

HINT: Errors & Omissions insurance for doctors, dentists, chiropractors, and other health professionals is often called “malpractice insurance.”