What Does Errors and Omissions Insurance Cover?
Errors and omissions insurance, also known as E&O insurance, is coverage that protects the insured against flaws in their designs or analyses that result in excessive cost to their customer. The sorts of project errors that might be covered under errors and omissions insurance in New Jersey include:
- Design errors in building plans and engineering drawings
- Event plans that were improperly made or miscommunicated
- Legal advice that failed to take facts into account
- Accounting errors that cause financial loss
- Software that doesn’t perform properly and opens the designer to risk
- Any errors that occur during the normal course of business
Almost every business in every industry can benefit from some form of E&O insurance. Any company that provides service of any type to consumers or other businesses should be properly protected against loss, and it’s rare that a general liability policy would cover errors and omissions. Professionals need coverage that protects against more than just physical losses, they need coverage to protect against the legal fees, additional work, and other losses. A professional in the field of insurance can make sure that every facet of liability has been adequately provided for in the policies in place. A qualified agent will help analyze the risks involved and write a policy that caters to the specific requirements of the business.