New businesses have many insurance options to consider before opening their doors to customers. Many choices, like general liability coverage, will seem obvious. Other policies, like errors and omissions coverage, which could win you business, less so. To make sure you are adequately protected, talk to an agent, like those you’ll find at Axis Insurance in New Jersey, about the coverages you need.
If you own a business that performs professional services, like hardware and software installation, ask about errors and omission (E&O) coverage. Prospects may require that your business carry this policy before they contract with you. They want to know that they are protected from monetary loss due to negligence on your part.
Protect Your Client and Your Company
A data breach is one of the best examples of how this could happen. Imagine your software company is implementing a new solution, which inadvertently leaves the client’s data vulnerable to a hacker. If that happens, the client wants to know it is protected, in part, from monetary losses. You want to make sure your company is also protected.
E&O coverage protects your business professionally, covering legal costs and judgments if a mistake on the job, related to the service you perform, leads to a lawsuit. Most general liability policies do not cover services performed, whether that work accidently causes certain damages or is viewed as poorly performed.