Error and Omission Insurance and General Liability Insurance are the most crucial insurance for an Technical consulting companies. Error and Omission Insurance required by the companies to protect them from any lawsuit by the client in regards to incomplete code, error in code and when missing deadlines in submitting the projects.
About Error and Omissions Insurance
At time after all your hard work you have to face severe consequences and might get sued by the client. Incase if the client loose sales due to any technology fault you may have to help them recover from the loss, else client will sue you for the loss. This type of insurance helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending.
What does Error and Omissions Insurance cover?
This type of insurance generally covers
1. Attorney Fees
2. Court Costs and Settlements
3. Covers Judgments
4. Out of court settlement expenses
5. Financial Damage
The covers normally depends on the limit of the policy.
Why Error and Omissions Insurance
Whether you’re a technology Consulting company, a plumber or some other professional who provides a service for a fee you should have a E&O insurance in place to protect you from the severe consequences, you may need to face due to financial loss of the client.
At time clients may ask you for Error and Omissions insurance before you offer services to the client. Yes that's true.
Clients are always concern about the quality of work and the deadlines. When you offer your services to a new client, they evaluate you on basis of your previous work experience, still