NJ errors & omissions policies cover legal fees and damages awarded in lawsuits brought against you for negligence or any other claim about the performance of your duties. If you operate a business in which the quality of your services affects your clients’ well being or that of their property, you need an E&O policy. Here are some examples of what such a policy can cover in various service-related fields.
Real estate firms often purchase errors and omissions coverage to protect them in situations where buyers allege they were not informed of problems with the property or its possible uses. Any detail that an agent or broker misses can result in a lawsuit. Building contractors need E&O coverage just in case something goes wrong with the property they work on. If, for example, faulty plumbing leads to water damage, a good NJ errors & omissions policy can protect the contractor from the cost of defense. An accountant’s miscalculation or an attorney’s unawareness of a helpful precedent may leave the professional in question in need of legal help. A good E&O policy is needed to handle the costs.
Any profession at risk for legal action needs to have an E&O policy in addition to general liability coverage. Adding this extra protection to your business’s package can save you a lot of money in the long run.