Errors and omissions insurance gives financial protection to businesses when their clients sue them for negligence or the failure to provide adequate service. Many establishments, including law firms, medical practices, and real estate agencies, can benefit from securing E&O insurance in New Jersey.
E&O Claims Cause Severe Financial Damage
Businesses encounter errors and omissions claims for numerous reasons, including:
- Bodily injury
- Property damage
- Failure to disclose information
- Failure to deliver certain services
Companies face tremendous backlash when they disappoint their clients. If sued, they may be obligated to pay high damage and settlement costs. E&O insurance in New Jersey offers protection in these situations. In the event of a lawsuit, the insurance covers a company’s legal fees and court costs. When they fail to secure adequate coverage, companies risk decimating their financial assets.
When to Acquire Insurance
The best time to acquire insurance is before a claim surfaces. Companies never know when their clients may become upset and take legal action. Not having protection in the face of a lawsuit spells disaster for many organizations. Once businesses secure insurance, they gain peace of mind knowing they have the protection they need.
Some mistakes are easily forgiven, while other cause serious consequences. One lawsuit has the potential to obliterate a company’s financial resources. Businesses protect their financial assets and reputation when they secure E&O insurance in New Jersey.