To Err is Human, to Insure is Smart
Despite excellent employees making the best decisions they can, every company will, on occasion, make errors that impact a client or consumer. Clients might then seek financial remuneration from the company. Businesses can protect themselves from costly litigation with errors and omissions insurance. With policies tailored to the specific requirements of each business or industry, EO insurance in New Jersey should be a piece of every company’s insurance portfolio.
Types of Errors Covered
Every errors and omissions policy is a little different, but a good EO insurance policy will typically cover the following items:
- Paperwork mistakes, filling out forms, submitting forms
- Design Failures
- Failure to inform clients or others, miscommunication
- Incomplete work
- Cyber liability
- Copyright infringement
Companies should be aware that this insurance will not cover any fraud or false advertising perpetuated by the company.
Types of Expenses Paid
EO insurance in New Jersey will usually pay for court costs and lawyer fees incurred by a lawsuit. EO insurance can also pay settlements reached out of court and judgements awarded in a trial. Deductibles can differ and liability limits will vary from policy to policy. Businesses must carefully compare plans to choose the one that offers the best coverage for their industry.