Errors & Omissions Insurance.Costly mistakes can happen — even to experienced experts. That’s why Errors & Omissions insurance is so important to protect you from lawsuits related to mistakes. E&O protects your company and you in the event that a client files a lawsuit relating to a service you provided, or failed to provide, that did not have the expected or promised results. Errors & Omissions insurance will cover your legal expenses, which can be very costly, regardless of if the lawsuit is founded or unfounded.
3 reasons for Errors & Omissions Insurance.
1) Shipping Errors.
Your business shipped a new machine to South America instead of South Africa and it cost your client hundreds of thousands of dollars in lost contracts and damaged their reputation, E&O will help protect you when that client files a lawsuit against you.
2) Missed deadlines.
You agree to have a project finished on schedule, but your own negligence sets it back 3 months and costs the client $80,000 in reputational damages and lost contracts, E&O will help protect you if they file a lawsuit against you.
3) Bad Advice.
You provide IT consulting advice to a client who takes your advice and implements new programming code that causes a severe breach in customer information, E&O will help protect you if that client sues you.