Errors and omissions insurance is basically protection against any kind of lawsuit towards professionals in any field. It is also known as professional liability insurance. It is commonly taken by professional firms, law firms, entertainers, physicians and many more. With the help of this insurance one can prevent themselves from financial losses.
Physicians especially are advised to take this insurance before starting their practice. The insurance comes into existence in case of laxity or unprofessional conduct while rendering services to the customers. Professionals like doctors and therapists take this insurance before practicing.
Many people take a check about the company’s insurance policies before taking up their services. This helps in building up trust in the customers mind. Also they can assure that in case of any fault from the company towards them, they can get complete compensation.
Errors and omissions insurance are almost same as other insurance. The procedure of applying for one of these is swift and expedient. If the company adds a new employee, then it should ensure to include the newly appointed employee in the insurance policy. Errors and omissions insurance are commonly for a period of one year.
There are various other insurances in the market like home based business insurance, product liability insurance, general liability insurance, commercial liability insurance etc. Errors and omissions insurance gives coverage to the professional firm against any kind of financial loss or damage. We should carefully read the terms and conditions before getting one of these. Freelancers too can obtain this insurance.