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18 April 2014 Category: Article Archives

Understanding the Basics of E&O Insurance

Many businesses are unaware of the fact that they are at risk for errors and omissions exposure. As a business, you are responsible for providing adequate service and products that meet or exceed the results that were promised. When this doesn’t occur and a client decides to retaliate, that’s when E&O insurance comes into play.

What Is It?

Basically, E&O insurance is a liability insurance that protects individuals and businesses against client-made claims regarding negligent actions or inadequate work. Generally, the insurance policy will cover the judgment, attorney fees and settlements.

Who Needs It?

Anyone that runs a business, from doctors and lawyers to architects and engineers, needs to have an E&O insurance policy in effect. Even businesses that do advertising or wedding planning can benefit from this type of insurance policy, as any business out there can have E&O exposure. 

For more information about E&O insurance and the type of coverage it provides, contact Massive Insurance in Pasadena, California.