Most professionals understand that giving advice could be potentially harmful to their business if they unintentionally omit details. Having errors and omissions insurance in NY to cover accidental errors may be a good idea for any business that offers advice or service to protect them from lawsuits brought against them by clients.
What Is Errors and Omissions Insurance?
Also known as professional liability insurance, an E&O policy may protect businesses from claims of negligence. Whenever a business fails to provide promised service or omits certain aspects of a project, it may be subject to an E&O lawsuit. This type of lawsuit may arise from a variety of situations, including the ones listed below.
- Inadequate coverage
- Conflict of interest
- Project design flaws
An E&O policy may prevent the business from paying for legal defense in the case of false claims, or it could aid in paying the restitution fees when the company is found at fault.
How Do You Choose Good Coverage?
Many insurance policies may leave gaps in coverage. To choose the best coverage, check for policy gaps such as in merger, medical, and accounting services. The best policy for errors and omissions insurance in NY may offer a broad spectrum of coverage so the business is legally covered when a lawsuit is brought against it.