If you’re like most business owners, you’ve worked hard to achieve your goals and dreams. You know that a successful business relies upon great service and products delivered in a timely manner. Unfortunately, sometimes errors are made that cause your clients and customers distress. Having a sound insurance policy for errors and omissions in NJ will prepare you to weather these financially difficult times.
While each policy differs in coverage, deductibles, and liability limits, most policies of errors and omissions in NJ pay for a few basic items.
1. Judgements and Settlements
If you or your company are sued, you may settle out of court or go to trial. In either case, an EO policy will pay the amount awarded, minus the deductible. Payment of punitive damages needs to be negotiated with each policy.
2. Legal Fees
Litigation is expensive. Lawyers’ fees, court costs, and administrative expenses quickly add up. An EO policy typically covers these costs so that you are not paying them out of pocket.
3. Libel or Slander
Also known as personal injury, this is a judgment awarded when you, your company, or an employee injures an individual’s reputation. EO insurance covers these fines.
Talk to an insurance professional to get the EO policy that is best for you and your company.