Do You Really Need E&O Insurance?
Insurance professionals have a simple philosophy about getting insurance – you buy it for the “just in case” factor. After all, that’s really what insurance is – the act of insuring protection against a loss of some kind.
Professional Liability Insurance (E&O Insurance) is designed to cover you in the event that your client alleges that you have committed some error or omission while rendering professional services for him/her. Although, in many cases, you’ve done nothing wrong, the simple allegation requires a response on your part and often from an attorney.
Lawsuits involving professional services can take a very long time to resolve – whether you’re found to have committed the alleged error or not. Time spent in the courtroom or in mediation is time spent away from growing your business. On top of all the money you may spend for attorney’s costs and possible settlements, the time you spend not focusing on your business is the most damaging of all. So, yeah – we say it’s very important. You know, “just in case”.