Any professional needs error and omissions insurance for protection of physical assets as well as protection from the threat of lawsuits. No matter if the lawsuit is founded or not, the professional needs to spend time and money on a legal defense, so a monetary loss occurs even if there is nothing awarded to the claimant. On the other hand, human error can also occur. Error Omission Insurance
Liability insurance protects a business owner in times of lawsuits for negligence. Negligence may harm the reputation of the professional which can lead to a loss of clients who question their abilities. Insurance provides out of pocket costs involved with lawsuits to avoid financial failure.
Many factors should be considered when searching for errors and omissions insurance. First, consider the pertinent industry. States usually have minimum requirements for specific industries as to the liability insurance amount. Check with your particular area. Even though a company may have existing insurance, it is wise to add more coverage that is aimed on them, not the company in general.
Try to locate a provider that specifically deals with the particular industry. Most carriers have insurance especially for industries like contractors or real estate. One must have a policy that covers individual needs, not other professions. When constructing a policy considerations must be made where they must be covered. Some companies may only need local coverage while others may need international coverage.
An errors and omissions policy should cover any job mishap. Professional liability is a safe way to protect against lawsuits while giving confidence to clients. A reputation is as important as physical assets.