Most businesses in New Jersey have general liability insurance to cover their operating risks. However, some types of companies need more because of the type of work they do. Such additional coverage is called errors and omissions (E&O) insurance. Buying this type of policy can make the difference between remaining in business if someone sues you and having to fold. Creative Risk Management LLC can give entrepreneurs the advice they need on an E&O policy.
What is E&O Insurance?
E&O insurance is professional liability insurance designed to protect individuals and companies from negligence claims plus inadequate or insufficient work. Those who file claims against professionals indicate that these actions have somehow harmed them. No matter how baseless such claims are, they can cost a company financially and in terms of reputation. A general liability or a business owner’s policy will not protect you from such events. Your best form of protection is errors and omissions, explicitly addressing these instances.
Who Should Get a Policy?
Anyone who provides advice to others should consider an E&O policy. New Jersey law doesn’t require anyone to buy this coverage. However, if you are a professional or have a business in any of the following industries, you should consider this coverage:
- Real estate agents
- Accountants and financial advisors
- Graphic designers
- Advertising agencies
- Tax professionals
- Marketing professionals
- Interior decorators
- Information technology
- Architecture and engineering
- Hairdressers
- Consultants and freelancers
In addition to defense costs, an E&O policy will help you with claims arising from past services, temporary or actual negligence, libel and slander, and copyright infringement. With a comprehensive E&O policy, you want to have out-of-pocket costs.
If you wonder whether your business will benefit from E&O insurance, contact Creative Risk Management LLC, serving New Jersey, to schedule a consultation.
