The Role of E&O in a Comprehensive Business Insurance Package
Good insurance agents can help you put together a solid business insurance package that meets all of your needs. They can structure it according to your industry, setting you up with general liability, workers’ comp, property and auto coverage, employment practices policies and E&O coverage. Different policies cover different issues. Here’s how errors and omissions in New York fits in.
Many things can go wrong when you own a business. Workers may get injured. You may be sued for discrimination. Your building may be broken into or have water damage. Each instance is covered by a different type of policy in your business owner’s package. What happens, though, when the problem is a result of a mistake or negligence committed by you or someone in your company?
Errors and omissions in New York covers unintentional oversight by an agent of the company if you are sued by a client. Extending beyond your general liability coverage, it specifically pays the legal fees and payouts associated with claims made against your company for damages caused in the course of conducting business.
While your E&O policy does not cover crimes or intentional acts, it can keep you from having to pay the costly expense of legal defense when mistakes are made or when necessary actions are neglected. It can protect you from the financial hit these lawsuits might otherwise be.