No matter what business you’re in, your organization needs to protect itself with director’s liability insurance. Also known as E&O, or errors and omissions insurance, it acts like a malpractice insurance. If you are new to E&O insurance, you may not know what to ask. Here are some things to keep in mind when purchasing this type of coverage.
- What kind of prior-acts coverage does the policy cover? Some policies only cover acts made during the policy coverage, while others are on a claims-made basis.
- Make sure to understand the limitations of a polity. Work with your agent to minimize the risks and keep your premiums low.
- Does the agent understand your industry? The agent can assist your organization in risk management and making sure you have the right coverage, but only when they know your industry.
- Does the policy cover all of your services?
Director’s liability insurance protects the future of your business or organization by providing legal costs when a director is accused of a wrong-doing. Even if they are completely innocent, defending their innocence is expensive. Make E&O insurance part of your cost of doing business to ensure the profitability of your business, no matter what happens. Lawsuits happen in today’s society. E&O insurance helps you manage the costs of a lawsuit.