Errors & Omissions Insurance (E&O) is a policy type to be considered for business owners. It is often referred to as Professional liability Insurance. Simply stated, this form of coverage protects the business and business owner(s) in the event that a client/customer alleges fault for unsatisfactory results or expectations of services that your business provided or failed to provide. When these situations arise, there is usually a legal component that has the potential for becoming very expensive.
E & O Insurance will cover the costs of litigation, including the investigations, lawyer fees, and settlement monies. Regardless of the outcome, the costs may be more than the business can handle, therefore negatively affecting the bottom-line of the business. It is highly recommended that any business that provides a service to others outside of their company carry Errors & Omissions Insurance coverage.