According to PLIS, Inc., the five top “negligence” reasons companies need Errors & Omissions insurance:
1. Employee Dishonesty
2. Failure To Document
3. Lack Of Internal Peer Review
4. New Employee Training Issues
5. Honest Error
Errors and Omissions Insurance is a form of liability insurance that helps protect professional advice and service providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are potential causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm.
Professional liability coverage sometimes also provides for the defense costs, including when legal action turns out to be groundless. Coverage does not include criminal prosecution, or a wide range of potential liabilities under civil law that are not enumerated in the policy, but which may be subject to other forms of insurance.
Here at Ramsey Insurance Agency, West Virginia Business Insurance is really important to us. With decades of experience in Professional Liability/ Errors & Omissions Insurance, let our professionals protect you.
