Errors and omissions insurance goes by a couple of names: professional liability insurance and malpractice insurance. It protects your business from claims arising from errors and omissions during service.
Who Needs It
Anyone that holds themselves out to be an expert should look into EO insurance in New Jersey. If you are a business providing services to clients for a fee, you probably need E&O insurance.
Typical professionals that benefit most from this type of coverage, include:
- Advertising agencies
We live in a highly litigious society. You don’t necessarily have to be guilty of wrongdoing to be sued. Court costs alone can add up quickly. EO insurance in New Jersey protects you and your business from the cost of defending against claims of negligence. It also pays out damages that may be awarded to the opposing party.
There is no standard policy for E&O coverage. It varies depending on industry and policy provider. Read over your policy to ensure it fits your exposure. Most policies involve a “claims made” form. This means claims must be made and sometimes made and reported with the policy period. They have retroactive dates. Acts committed prior to the retroactive date are not covered. How far back the retroactive date goes can have a drastic effect on rates.