Any business that handles other people’s money is going to need e & o insurance coverage. It keeps the business safe and secure. Occasionally because of a mistake by the company or its employee the client may suffer financial losses. In that case the client is going to demand compensation. In such a situation the E & O insurance policy comes to the rescue.
For example a lawyer can make a mistake in the paperwork which may lead the client to suffer damage or losses. In such a case the client would seek compensation. Car selling agents may also make a mistake in preparing the sales sheet. The buyer may not only want the commission back but also the difference. In such a profession where the revenue is sporadic it would be better to have the insurance coverage like e & o insurance to avoid suffering severe financial losses.
Even those who do not have to deal with other people’s money can purchase errors and omissions insurance. If the kind of business means that an unintentional mistake leads the client to suffer financial losses then they may sue the business. Even if the damage was not monetary in nature, the client may claim damages. There have been many court cases where people have won even though the matter was not considered to come under general compensation.
Protecting business within the budget is a viable idea that can be realized by contacting an insurance agent. They have all the information regarding e & o insurance quotes from different insurance companies that are affordable.