If your business provides advice or a service to clients, then you know how easy it can be for a disagreement to emerge between the two parties. Perhaps your staff accidentally makes a mistake that leads to a client’s financial loss. Or maybe there’s a miscommunication that skews a client’s expectations of the work that is actually being done.
Whatever the situation, your business could be liable for losses and damages experienced by clients. In extreme cases, your business could even be taken to court to reclaim losses. Between legal fees and settlements, the money your business owes after such a debacle could be enough to shut your doors—at least temporarily, if not permanently.
Fortunately, much of your worry can be relieved if your business is equipped with errors and omission insurance, also known as E&O insurance. This coverage is designed to help cover the costs associated with errors, miscommunications, negligence and other similar circumstances that cause a client to face a financial loss.
With the financial backing of E&O insurance, your business is much more likely to survive a similar incident. And rather than putting your money toward legal fees, you can instead focus your efforts on any PR that may be necessary to remind your clients of your talents.
If you’ve experienced this type of situation at work or fear that it could happen in the future, talk to your local agent about the benefits of E&O insurance. You never know when it could come in handy.
We’ll help you find the right coverage. Call U.S. E&O Brokers at (800) 460-6424 for more information on E&O insurance.