Small business owners must protect their investment from a wide variety of liability claims. If you offer professional advice or services to clients, you are especially susceptible to lawsuits from unhappy customers.
Errors and Omissions Protection
E&O insurance is a form of professional liability coverage. Let’s look at a few E&O claim examples listed below.
- Negligence – Any time a company error or negligence results in financial damages to a client, you may be sued.
- Misrepresentation or Fraud – If someone in your company promises to deliver services that exceed the capabilities of your business or they fail to mention hidden costs to a customer, you could face legal difficulties.
- Breach of Contract – Before working with any client, it is crucial to outline all the details of the contract. Make sure the client understands and signs the agreement. If, however, you find yourself unable to fulfill all your obligations, the client may sue for breach of contract.
- Data Breach – As computer hackers become more sophisticated, the potential for data breaches increases. If a client’s sensitive information is stolen or destroyed, you may be sued.
Without proper coverage, you could face expensive legal fees and settlement costs. Discuss your options with your insurance agent to ensure you select the best plan for your company.
Protect your business from unwanted claims by investing in E&O insurance.