Every business owner understands that business liability insurance is critical to protect their investment against unwanted claims. There is some confusion, however, regarding which type of policy will best protect your company when you are confronted with the many scenarios that are possible. There are two important policies to consider when putting together the best business liability insurance policy.
Protection Against Business Claims
Errors & omissions coverage and directors and officers insurance are similar in many ways, but they provide some key differences in protection. It’s a sound idea to discuss both E&O and D&O coverage with your agent to ensure you find the best protection for your business. Without proper coverage, financial damages and legal fees could be astronomical.
- Errors & omissions insurance – If you provide professional services to clients, this policy will protect your business against claims of negligence, malpractice and flaws in the design process. This policy protects anyone who represents your company in the process.
- Directors & officers insurance – This policy only protects executive management from personal liability when claims are filed against their management practices. Claims include unfair business practices, conflicts of interest, mismanagement of funds and negligent acts.
Make sure you find a trusted and competent insurance agent to provide you with the best protection for your business.