What Your Errors and Omissions Insurance May Not Cover
Errors and Omissions insurance is an essential policy in any business profile. It can protect you against lawsuits that may arise if your firm makes a mistake. Furthermore, a comprehensive errors and omissions plan from AXIS can cover the legal fees to protect your business against erroneous suits. Unfortunately, there are some things that most business insurance plans do not include.
Employee and Hiring Issues
Customers are not the only people who can sue a business. Sometimes, employees or job candidates may file a lawsuit. Your errors and omissions policy from AIS may not cover your legal fees from these suits. However, you can purchase management liability policies that will keep your business financially safe from these legal fights.
Errors and omissions policies are meant to cover accidents. If a customer can prove that your company intentionally and knowingly caused harm, your plan may not pay for your legal fees or settlement. Its not just AIS; no insurance policy can legally cover these acts.
Just like intentional harm, business insurance cannot cover illegality on the part of the company. Be sure that your business toes the legal line, and you may not have to worry about this critical exclusion.
If you arent sure what your policy covers, be sure to ask your agent and read your policy carefully.