Who Needs E&O Coverage?
Errors and omissions insurance is coverage designed to protect companies and their employees from legal claims stemming from inadequate or incomplete work. While any business especially those that are service oriented faces the risk of a lawsuit, certain companies have a particularly high risk. Some professions that commonly purchase E&O coverage include medical providers, brokers, lawyers, consultants, financial service providers and general contractors. That said, even if you don’t fall into any of those categories, you may want to at least look into errors and omissions insurance in NJ just to be sure.
Anyone or any business that provides professional services or advice could benefit from E&O coverage. Web designers may need protection if a website doesn’t live up to a client’s expectations. A software developer could be at risk if their software posed a malware threat to a customers systems. Manufacturers could be exposed to professional liabilities if they outsource product or part development to third-party vendors or if they conduct business online.
When trying to determine whether or not your company could benefit from errors and omissions insurance in NJ, don’t assume anything. Speak with an insurance underwriter about your business and possible risks. A knowledgeable agent may be able to help you identify risks you weren’t aware of and guide you toward solutions that can protect you from any potential threat or liability your business faces.