Why Does My Company Need E&O Insurance?
Lawsuits—both legitimate and frivolous—are common today. Adding professional liability insurance to your business insurance portfolio can help protect you from the time consuming and expensive proposition of mounting a defense if a client takes you to court.
Professions that commonly purchase professional liability insurance include:
- Medical providers
- Attorneys and legal service providers
- Financial services professionals
- General contractors
But anyone providing professional advice and design solutions to clients, from Web designers to music composers to realtors to software developers, could be at risk and should consider professional liability insurance.
If your company is primarily manufacturing, or product-oriented, you could also be exposed to professional liabilities if you outsource jobs to third party vendors, or conduct business online.
If you do business with large corporations, or in international markets, you may be required to carry E&O insurance before you can sign a commercial services contract.