What You Need To Know About E&O Insurance

E&O Insurance Basics

Owning a business comes with a lot of responsibility including making sure that you are protected from any unfortunate situation. While you can do all you can to avoid an accident or injury, there is no way to guarantee that there will never be an incident. Investing in the right insurance policies is the best way to ensure that you stay safe.

Errors and omissions insurance, also known as E&O insurance or professional liability insurance, will provide coverage in case a client decides to sue your company if they believe that your company acted negligently or made a mistake. If you provide services to your clients, you are vulnerable for any liability issues if your services do not have the desired effect. E&O insurance will provide coverage for your business for any lawsuits that are related to professional errors, even if they are just perceived errors by a client.

E&O insurance will provide coverage for many of the expenses that are associated with a lawsuit, including:

  • Court costs – using a court reporter during a deposition or filing any documents with the court requires a fee to be paid.
  • Lawyer’s fees – most lawyers typically charge clients by the hour, and lawsuits can take a lot of time, leading to a very high bill.
  • Administrative costs – various documents have to trade sides during a lawsuit in order to allow the lawyers of both sides to examine them. The processing, shipping, photocopying, and software charges will all be covered by an E&O policy.
  • Judgments – if you lose a trial, you will have to pay a court judgment or a lean can be placed on both your business and your assets.
  • Settlements – if you settle out of court with a client to save money, an E&O policy will provide protection.

For all of your commercial insurance needs and to ensure that you have the right amount of protection for your business, contact the insurance professionals at Desert Empire Insurance in Palm Desert, California.