Many companies think that E&O insurance is a luxury, unimportant to their business. At AIS, we believe that E&O insurance is vitally important. Here are some statements that many businesses believe means they don’t need E&O insurance.
1. We don’t make mistakes.
Can you really guarantee that you are 100 percent perfect, every day, all the time? If you or an employee makes an oversight, it can open the door to a lawsuit.
2. We only give advice.
Consulting services can be a significant risk to any business. If a client takes your advice and you’ve made a mistake in your calculations, it could be devastating to your business. E&O insurance can help with litigation expenses, even in the event the lawsuit is unwarranted.
3. Our general liability policy covers our needs.
Read the exclusions on your general policy and you can quickly see that this statement is not true. Errors from professional services will not be covered on your GL policy.
4. E&O insurance is too expensive.
At AIS, your insurance policy is tailored to fit the size of your business, the location, your claim history and more. Instead of getting a one-size-fits-all policy that may leave you underinsured, you get a policy specifically underwritten for your business. This keeps your costs lower and makes the policy more effective if you ever have to make a claim.