So last friday we discussed directors and officers insurance, which is a special insurance policy that protects individuals who are in high management and executive positions within a company. It basically protects these women and men from legal action due to their past business decisions. But now what happens when the products or services that businesses produce and/or offer don’t work correctly? What happens then?
Well for a basic definition, errors & omissions insurance is a liability CT insurance coverage that protects businesses and its employees against claims made by clients or customers about unsatisfactory work or action taken by the company. This insurance policy will cover the high cost of litigation, as well as any settlements that are a result of the litigation, up to a certain amount that is dictated by the insurance policy contract.
This is a very important insurance policy for any executives that need coverage. It’s always a good idea to have insurance protection in the business world, as you never know when someone could bring a suit against you or the firm you work in, for a failed product or inadequate service. You should never take CT insurance for businesses for granted, as they could end up saving the life of the company, as well as your career.