Every business venture involves potential liability. There are certain issues, however, that your general commercial liability policy doesn’t cover. If someone at your company is accused of making a mistake that caused damage to clients or their property, you need additional coverage to avoid paying out of pocket. Having a policy that covers errors and omissions in NJ, can have several benefits.
An E&O policy covers legal fees and court costs when others claim that your company harmed them in some way through a mistake or negligence in the course of rendering services. It also covers any settlement reached or damages owed to the plaintiff in the case, as long as the money you owe does not exceed your policy’s limits. Many E&O policies offer a first dollar defense, covering your legal fees from the start. This keeps the suit from tying up capital that you need to run your business in defense costs.
Your general liability can only go so far. Without a policy covering errors and omissions in NJ, you may be left vulnerable to legal accusations regarding the quality of your services. Even if you win your case, the cost of defending yourself can set you back. An E&O policy can ensure that such allegations don’t keep you from business as usual.