Is your business prepared to pay the defense costs of an errors and omissions (E&O) lawsuit? In this litigious society, individuals and businesses that provide a professional service to the public are putting themselves at risk every day to be the subject of allegations from unsatisfied clients.
Errors & omissions (E&O) liability insurance can protect your business from liability expenses incurred as a result of mistakes made through error or oversight. Most importantly, it covers the costs of defending meritless cases.
Without E&O liability, your business is at constant risk of being sued for the alleged or actual mistakes of employees. Here are 5 reasons why your business needs E&O liability insurance:
- More businesses are required to carry E&O insurance, which means you may risk losing the opportunity for a new project without it.
- Contracts only go so far in protecting you from potential lawsuits, as contract provisions are routinely challenged in court and at a considerable expense.
- The number of legal challenges continues to rise as clients do not hesitate to take legal action if they feel service was performed below expectations.
- Defense costs, even in frivolous cases, can be costly in not only dollars but in lost work time.
- Errors & omissions liability insurance can be both cost effective and ensure that clients will be comfortable working with your business.
For additional information on errors & omissions liability insurance, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.