Errors and omissions insurance was designed to protect businesses and nonprofit organizations from claims made against them for negligence or improper work. While your employees may do their best to prevent problems, sometimes human error or mistakes in judgment have serious consequences.
Many types of businesses use errors and omissions insurance to protect both their assets and their clients, and some are legally required to do so:
If you are not covered by errors and omissions insurance and someone wins a successful judgment against you, you could lose your business or perhaps even your personal assets to satisfy the claim. If you have employees, you put them at risk too by not having sufficient errors and omissions coverage.
Imagine this scenario: you run a small contracting business. One of your workers isn’t feeling well and in his haste to finish a plumbing job, installs a pipe incorrectly. The pipe bursts, flooding the client’s house with water and causing thousands in water damage. The client needs to leave their home for a month during the repairs. Would your business be able to cover reimbursing that client without insurance?
Having errors and omissions insurance can cover legal expenses and settlements against your business that are not covered by other types of liability insurance. It also tells your industry and clients that you are professional, opening doors for you that are closed to less meticulous competitors.
Not sure what kind of errors and omissions insurance your Logan business should carry? No worries. Give Hometown Insurance Agency of Utah a call at 435-754-7701, and we can go over the options with you. Our independent agents have access to hundreds of insurance products that can be assembled to provide the perfect coverage for your business and give you the peace of mind to focus on doing your job, not worrying about mistakes.