When it comes to running a business, one of the most important steps is to make sure that you are looking into any insurance you may need. One type of insurance that you may not have thought about is errors and omissions, or E&O. Here is some information about errors and omissions insurance from NJ that you may want to brush up on for your business.
E&O insurance is made to protect companies and their employees in the event that a client tries to sue them for making costly mistakes. The clients can often accuse the business of producing work that was inadequate or incomplete, causing them to lose money. For example, your shipment of products to another company could have come late or gotten lost, costing them a lot of revenue until the products arrived and putting them behind their own production schedules.
This insurance type is meant to cover lawsuit expenses. This can include fees to pay the lawyer, the costs of filing court documents, paying out settlements and judgments and even the administrative costs for shipping, processing and photocopying documents.
There are many different types of insurance available for businesses. However, if you are working with other clients that may find reason to sue you in the event of a mistake, errors and omissions insurance from NJ may be a good thing to invest in.