Consumer trust is crucial to earning repeat business, new clients and building a profitable company.
Professional liability insurance, also known as errors and omissions insurance in NJ, helps protect individuals and organizations that provide service or offer advice against claims of negligence. Coverage details focus on:
- An individual or organization’s alleged failure to perform a contracted service.
- The service provided did not have the anticipated results.
- Errors or omissions in the service or products sold by the policyholder.
- Financial loss caused by the policyholder.
Errors and omissions insurance in NJ may be required for particular kinds of professional practice. Policies provide coverage for a specified period and are usually set up on a claims-made basis. Although mistakes which result in a client’s financial damage can occur in virtually any profession, E&O policies are often used by consultants, brokers and agents in a variety of industries, from software developers and attorneys to engineers and real estate agents.
In some instances, coverage can be added to offer indemnity for civil liability. The wording of standard, generic policies can be tightened to fit an organization’s needs more inclusively. Requirements may vary by state or industry, so it is essential to work with experienced insurers. They understand the pitfalls that can occur and the type of policy that is needed to prevent them.