Any business faces risks entailed with lawsuits. If your company fails to provide a service, then a client or customer may sue, and this is where having errors and omissions insurance in Michigan will come in handy. For starters, having a comprehensive insurance policy will assist you greatly in covering legal fees associated with a lawsuit. Small businesses in particular are susceptible to being dealt a heavy hand when facing a lawsuit because they may not bring in the revenue necessary to hire really good legal help. Having insurance takes some of that burden off of you.
When going to court, there is always the risk that your business will end up losing and having to pay a settlement. Again, paying a settlement of any size can place an extreme hardship on your company. This is why it is best to simply pay whatever your rate would be on errors and omissions insurance in Michigan. With this kind of policy in place, you know exactly what you are paying month-to-month instead of having to potentially pay some unknown amount in the future. All businesses need to be insured, so talk with an agent in order to make sure you have all the coverages you need. With peace of mind, you will be able to operate your business effectively.
Clients in search of an errors and omissions insurance quote must keep a few key principles in mind in order to ensure success. These principles can prove helpful to those in the process of procuring this insurance, from targeting industry needs to ensuring plans offer comprehensive coverage.
Every Industry Needs an Errors and Omissions Policy
Most errors and omissions claims arise from a seemingly harmless mistake. Unfortunately, these mistakes can occur in virtually every industry, from retail to heavy construction.
That’s why it’s imperative that all businesses possess such insurance. These plans can mitigate the financial damage associated with such claims, as well as allow a business to ably defend itself throughout court proceedings.
Comprehensive Plans Include a Number of Policies
Businesses must have comprehensive coverage in place to protect against a number of situations. For instance, a directors and officers plan is necessary to keep management personnel protected from legal and financial fallout.
Other important policies include employment practices, crime, and fiduciary insurance, which is helpful in the event that employee benefits plans are mismanaged. By implementing a combination of plans, clients can rest assured that they will remain protected no matter what occurs.
Protect Your Business With the Right Insurance Plan
Seeking an errors and omissions insurance quote requires quite a bit of knowledge to make a truly informed decision. With the right plan in place, your business will remain protected under a variety of circumstances.
Errors and Omissions liability insurance protects businesses in the event that the service they provided unintentionally failed to meet a client’s expectations. When weighing the cost of Errors and Omissions insurance against the risk, it is helpful to ask the following questions.
1. How Risky is My Business?
If you are a doctor, there is no question about purchasing Errors and Omissions insurance. If your profession does not generally involve life and death, the decision to purchase E&O insurance may not be so simple. Seriously considering how difficult it is to always deliver what your business promises is the first step in deciding whether E&O insurance is right for you.
2. How Often are E&O Claims Filed in My Field?
Insurance companies have a good idea of how much to charge businesses and individuals in fields commonly covered by Errors and Omissions insurance. If your business falls outside of these common categories, an insurance company may decide to charge you a higher rate to be safe. Knowing how often Errors and Omissions claims are filed in circumstances similar to your own can help you know whether you are being quoted a fair rate.
3. Can My Trade or Professional Association Help?
Trade and Professional associations often offer Errors and Omissions insurance packages to their members. These deals are tailored to meet the needs of a specific profession, so you can feel confident you are not getting to much or too little coverage.
Errors and Omissions liability insurance should not be a prohibitive expense for any entrepreneur truly in need of protection. Learning about the standards in your industry and working with an insurance company familiar with errors and omissions claims will help ensure that you are protected appropriately.