If you run a business in New Jersey in which you offer some sort of professional services to customers, then you are likely under risk of being accused of negligence. Although you may not always be at fault, when your business gives advice, aid or other managing actions in order to help a paying person, if the results end up unexpected or negative, this can lead to lawsuits. Due to this possibility, it can be extremely beneficial to find New Jersey errors and omission liability insurance to keep your business protected financially in legal processes that can be quite costly.
What Is Errors and Omission Liability?
If a business is accused of professional negligence, whether through poor advice, lack of action, conflict of interest and more, then legal action can be taken in order for the harmed party to recover from their loss. Errors and omission liability (also known as professional liability) can cover the costs of legal fees such as for an attorney, settlement or damage expenses, and coverage for slander and copyright infringement.
While you may be confident in your business’s abilities, there are two things to keep in mind:
- Mistakes happen.
- People can unfairly accuse your business.
Whether or not your business is truly at fault, New Jersey errors and omission liability insurance can cover the court fees involved. This is why any New Jersey professional business should acquire errors and omissions coverage.