Errors and Omission insurance policy is designed to safeguard a business against losses that may arise as a result of mistakes made by an employee either accidentally or intentionally. A prudent businessman should take up this policy in order to safeguard the profitability and reputation of the business E & O.
Many entrepreneurs are slowly taking up e & o policy because of the safety measures it guarantees for businesses enterprise in case a misfortune take place. Generally, there is no client who would like to lose his or her money as a result of another party’s negligence. This client will resort to any measures in order to get their money back even if that means filing a lawsuit. The client will not be interested in what circumstances you lost the money, all they want is they want is their money back.
E & o insurance will be of benefit to a business that handles money on behalf of their client. Such money may get lost, courtesy of a careless employee who may end up giving it to the wrong person or misplacing it. In addition, a lawyer who fills in a sale contract on behalf of his client should have this policy as a protective measure. If he neglects to fill the contract form properly, the buyer might get a loophole of avoiding paying the full amount of the sale.
All businesses are advised to take this policy regardless of their operational history. Even if your business has a track record of success, a risk is a game of probability.