What is Errors & Omissions Insurance?
Errors and Omission Insurances protect your company from claims made by clients who hold you responsible for errors or some other failure regarding the work performed as promised in your contract.
Error and Omissions insurance coverage extends to both W2 employees as well as 1099 subcontractors and can be worldwide in scope.
When do I need Errors and Omissions Insurance?
Error and Omissions Insurance is generally recommended to be at the foundation of every company's insurance portfolio. It is usually wise to purchase the coverage prior to product launch or when you start servicing customers.
Coverage includes legal defense costs, no matter how baseless the allegations. With Error and Omission insurance, you will be reimbursed for any resulting judgement against you including the court cost, up to the coverage limits of your policy.
Why do I need Errors & Omissions Insurance?
Mistakes Happen. Every company messes up at some point. You can't be everywhere and sometimes you can't personally handle every job. Errors and Omissions coverage insures not only your mistakes, but the mistakes of your employees and independent contractors you hire as well.
Most Importantly: Errors and Omissions insurance can save you from extreme embarrassment, a lost client, and a bad reputation.