An error and omission, or an e & o will likely happen to every company that is out there at some point in their career. These mistakes vary widely, but all can be time consuming and expensive. Negligence, inadequate work and poor product quality are all things that can happen. Even if you yourself did not make the mistake, you can be held legally and financially responsible. Errors always come with a consequence. The entire company can be impacted if a legal battle ensues.
The type of mistake that happens will vary, depending on what you or your company provides to the public. Smaller projects and undertakings can still have big mistakes happen. Causing financial harm to anyone and/or their company can end up being a very costly e & o. Once a person or company believes that they have received poor work quality, inadequacy or just not what they wanted from your or your company they can decide whether or not they want to pursue a legal battle. With so many cases being filed, it can take a long time to finally receive a judgment in your case. Hiring a defense lawyer and time without business can ruin your company.
Some companies do not prepare themselves for the consequences of human error. Many people will fall victim to the results of an e & o.