Errors and omissions coverage is an essential form of protection for many professionals, especially those who have a significant duty to the people they serve. Doctors, lawyers, and finance professionals alike need to carry it, although not for the same reason. While it’s only one part of the professional liability package in malpractice insurance quotes, E&O for financial companies often makes up the entirety of a firm’s professional liability coverage.
Protecting Against Employee Error
Whether it’s intentional or not, employees do commit errors while serving the clients your business depend on. At best, it’s a rare occurrence caused by the stress factors of the time, but it can also be a bad faith action by a person intent on fraud. E&O coverage takes care of your firm in the event that a mistake or omission is uncovered and clients have claims for damages, up to the policy limit. That’s not all, though.
Not all claims are equally valid, and fighting claims that are made in error or bad faith is just as important as providing restitution to clients when an error costs them money. With the right E&O for financial companies, you’ll also have help fighting claims that have no merit, protecting you against many of the potential cost pitfalls involved in defending your company’s reputation.