Working in a professional capacity demands attention to detail. However, it’s only human nature for the occasional error to occur. That’s why E&O coverage is necessary to prevent lawsuits and other problems from occurring. Here are three reasons why E&O insurance is needed.
1.Issues of Negligence
Negligence can be defined as failing to deliver work on time or forgetting to include important information. Having E&O insurance can prevent a lawsuit and ensure the company can still operate without losing money.
2.Damages and Claims
Having claims filed against a business because of a mistake is something no business owner wants, but it does happen. If a company you’re doing work for sues for pain or a loss of money related to work done on your side, having E&O comes in handy. It essentially allows the claim or damage to get paid out without causing a loss to the business.
3. Infringement Related to Copyright
Accidentally infringing on copyright can happen in any circumstance. If the person who created the infringement honestly wasn’t aware of it, they aren’t necessarily a dishonest worker, but the claim won’t go away. With E&O coverage, any lawsuits that result from this work get covered.
Having E&O insurance is an important preventative act for any business. There’s no telling when an accident can occur, but having the right coverage makes all the difference in keeping the business afloat and avoid further issues.