Small business owners know all too well the importance of budgeting. Many companies exist on a month-to-month basis, relying on contracts or large orders to tide them over until the next period. A costly lawsuit related to an error or omission can quickly devastate a small business. Having a reliable e & o insurance policy can give owners peace of mind and mitigate the financial risks of a claim.
How It Works
Most businesses already have a number of insurance policies in place, such as property insurance, workers’ compensation and liability. It is imperative to also have coverage for business malpractice, which covers a range of mistakes, such as:
- Ruining an expensive item while performing housecleaning duties
- Misplacing a valuable order
- Crashing someone’s computer with software you did not know had a virus
Just about any business has inherent risks such as these, where costs can quickly escalate. Court fees alone can eat into a company’s budget, and a lawsuit will only add to expenses. E & o insurance will protect a business from the results of an earnest mistake.
A qualified insurance agent can perform a risk-benefit analysis to determine the type of policy that will best suit a small business’ budget. Similar to other insurance plans, there are deductibles, liability limits and other variables that can be adjusted and customized to each policyholder.