Why Companies And Individuals Need An E&O Insurance
posted on 9 January 2012 | posted in
Business and Finance
The truth is, this is the first time I’ve heard of this kind of insurance. But as I went about searching a lot of websites on this type of insurance, I have understood that I already knew it but was just not familiar with what it was called.
It had been known in the insurance industry as professional liability insurance. However, the down side of this kind of insurance, which has been subject to long and exhaustive debate among the brokers, is the actual cost of the e&o insurance.
If, for example, a customer has asked or have talked to a company or individual about retaining their services. But for some apparent reason, I didn’t like their service or their service did not meet my expectations, I can file legal actions for the result that didn’t meet the quality of the service that was agreed upon.
No matter how stable the company or the individual is, once you are charged with an errors and omission charge, your business or practice will surely experience a slump. Worse, you may be forced to file bankruptcy and close down.
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