All human beings make mistakes, and the same can be said of businesses. However, when businesses make big mistakes it can be extremely costly to the point of no return for the company. Specifically, errors and omissions (E&O) lawsuits can be devastating for a business. Keep reading to learn more about financial institution E&O.
What Is E&O Insurance?
E&O insurance is also referred to as professional liability insurance. It protects businesses that provide services and advice from certain court claims. Those claims typically include negligence, failure to perform a service, poor advice and financial loss.
E&O insurance policies offer coverage for services and advice provided by a business. If a company offers additional service, it must ensure that the new service is added to the policy. If the organization fails to do so, it could be liable for more than the value of the service itself.
Does Your Business Need More E&O Insurance?
The best way to determine whether your business needs more professional liability insurance is to speak with your insurance broker. You should provide a comprehensive of all of the services offered by your organization. The broker can review that information and help you decide what the right level of coverage is for your business. If you are unsure whether you need more E&O coverage, contact your insurance broker.