When we think of insurance, both commercial and personal, liability is one of the things that pops into our minds. It is not, however, the only kind that can be necessary. In the professional world, or E & O Insurance, covers you when liability does not, and can be a good investment when looking into commercial insurance.
Liability insurance is designed to cover the other party. Though it will usually pay out any damages due, it will not help you to pay for your legal counsel or other case-related costs. This could be bad, as a drastic out-pouring of money like that could be enough to close the doors of your business.
It is an unpleasant fact that anyone who does business with the public will usually benefit from insurance. This is especially true in markets like money management or other banking services. This is due, in part, to the ever-changing nature of investments. What is good advice today, may not be good advice tomorrow. If a customer were to, for instance, sue for the loss of a thousand dollars due to bad advice, would pay for your legal counsel as well as any monies that happened to be awarded.
In the business world today, undoubtedly a good thing to have. It helps to protect both your business and your professional reputation. Though it is not a legal necessity, you may find that is necessary to your financial well being as well as your emotional comfort.