Why Get Errors and Omissions Coverage?
If you don’t have an Errors and Omissions Insurance coverage, a company can be taking a serious financial risk. These types of losses are not covered under a general liability policy. And even if you are not at fault, litigation is both time consuming and expensive.Defense costs are a significant portion of the cost of an errors and omissions insurance policy. It is not uncommon for a professional to spend thousands of dollars on defense costs for a matter that ultimately gets dismissed.That is why errors and omissions insurance coverage can come in handy. Legal expenses in your defense can be paid by an insurance company.Some Errors and Omissions Insurance coverage also include the defense expenses within the limit of liability. Some will exclude punitive damages. The wording of these policies can vary greatly, and each policy must be read carefully to make sure the coverage fits the exposure.
