It’s your protection against devastation. Suppose you do hair, and your client doesn’t like it – she says it’s too short – and she decides to sue you, because she’s going to be married in that hairdo? You did nothing wrong, but she has lots of cash, and likes to sue people. Just the lawyer fees to defend your business could destroy it. You’re okay, though, if you have E&O insurance.
Or, imagine you are a baker, and you misspell a name on an 80-year-old’s birthday cake, commissioned by a very rich client, and they don’t notice it until the cake’s being served. They are horribly embarrassed, and so they determine to sue you. If you have E&O insurance, you are safe.
The way it works is that your insurer pays for claims against you for the kinds of errors you specify in your policy. Both hair stylists and bakers, and all other people who provide services to the public need this type of insurance to cover your lawyer’s fees and any damages awarded, resulting from mistakes made while you are performing your services.
As a careful business owner, you can avoid this danger to your business. Errors and omissions insurance transfers the risk away from you and your business, should any error occur. Koch Insurance will help you determine what you want covered in your policy and implement it quickly and efficiently. Contact them for help.