Top 5 Reasons Why Your Business Needs E&O Liability

Top 5 Reasons Why Your Business Needs E&O Liability

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:

  1. More businesses are required to carry E&O insurance, which means you may risk losing the opportunity for a new project without it.
  2. Contracts only go so far in protecting you from potential lawsuits, as contract provisions are routinely challenged in court and at a considerable expense.
  3. 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.
  4. Defense costs, even in frivolous cases, can be costly in not only dollars but in lost work time.
  5. 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

*This article is written for informational purposes only and should not be construed as providing legal advice.