Obviously, generally liability is a must have, but is it necessary to carry errors and omissions insurance? What should I consider when deciding whether or not to carry it?
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E&O is expensive, but useful. Our company has it - we wrote for Microsoft's bCentral sites for 2 years a while back and it was a requirement of our contract. We decided to keep it and we are glad we did. One thing you may find is that in attempting to get contents or generally liability insurance, you may be required to get E&O. This can get very expensive, but we found that by shopping around (and not listing to the BS of our original agent) we found rates that were significantly lower than what our initial agent was charging. |
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Talk to a few insurance brokers and get quotes on Error/Omissions Insurance. The insurance brokers will help you determine if you need coverage and give you a quote (so you can compare prices). |
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What kind of business do you have? If it is any sort of financially based business, you should definitely consider getting E&O insurance. Though expensive, it is nice to know that you have the protection there just in case. |
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I actually run a small business and I decided to get an errors&omissions for my business insurance after one of our ex-lawyers got us in big troubles that led to an even bigger money problem that would have been easily dealt with if only I had an E&O insurance. You should consider it if your business works a lot with other profession men, such as lawyers, engineers etc. |
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