errors and omission policy

How To Protect Your Business from the Unexpected

No matter how well you prepare, accidents happen. When it comes to business, if an accident happens, whether it is a customer injury or damage to someone’s property, the consequences can be devastating. You can protect your business, however, with the right errors and omission policy.

An errors and omission policy, or E&O, protects business owners by providing legal cost coverage when someone files a lawsuit against the company based on an alleged professional error. As further protection, the policy covers judgments levied on the business.

What About General Liability Insurance?

You may think, because your business carries general liability insurance, you are covered against professional mistakes. However, many general liability policies do not cover this type of accident, even if the work damages property.

A solid errors and omission policy will cover that, as well as costs associated with other liabilities, such as disputes arising from:


  • Poorly performed work
  • Missed deadlines
  • Incomplete work
  • Employee mistakes

Does Your E&O Policy Provide the Following?

Before you sign off on an errors and omission policy, make sure your agency provides you with a lawyer. If you decide you should sue another company based on, or spurred by, the lawsuit, most E&O policies will not cover those legal costs. Sit down and spend time with your insurer to make sure you fully understand your E&O policy benefits.