E&O insurance or Errors and Omissions insurance is professional liability insurance. These policies protect companies and their workers against negligence allegations and claims of inadequate work. No matter your industry, these types of suits can happen to anyone. However, they are most likely to occur in the insurance, financial and legal industries. Without New York E&O coverage, here is what you stand to face.
Without insurance, you have to pay all of the litigation costs. It doesn’t matter if its a frivolous lawsuit or a legitimate one. Both cost money to fight and you have to pay out of pocket if you don’t have the insurance.
When people hear about pending lawsuits, they may trust your accuser more than they trust your company. When you have a lawsuit pending, you need to do serious damage control to save your image. Likewise, you need to show your worth if brought to court. It’s difficult to do this if your business has to fit the bill for all of the legal costs.
When it comes to New York E&O coverage, you don’t want to skimp on it. This will help you and your employees in the case of any negligence allegations. Not only does it protect you when there’s no weight to the allegations, but even when there is.