An apparently small mistake can invite a total financial collapse of a company or an individual. Errors and omissions insurance however provide enough money to the accused to challenge any inappropriate claim brought against them. In many countries, this insurance is mandatory for companies whose main business comprises of doling advice to customers for money. It may often happen that a patient or a client sues a company for losses or damages that have not been caused intentionally and the company is not accountable for the losses. Under such circumstances, a company without the right coverage may run into deep trouble. Not only the lawsuit will be very costly to continue with, but the name and reputation of the company will take a bad beating, too. People often carry out good research before shifting their loyalty to such a farm and any kind of negative feedback may mean losing many potential future clients. E&O
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