How to Get Started With E&O Insurance

Unfortunately, some business owner's first experience with New York E&O insurance comes when they are hit with a liability because of an error or omission in documentation which causes damage to another person or business. They may be unpleasantly surprised to find such a common occurrence is not covered under their commercial general liability policy. Even more distressing may be the requirement to deal with the liability using out of pocket cash.

Getting Started

A better strategy is to design an appropriate E&O policy for the specific type of business involved. First, the business owner should determine the type of paperwork involved in normal workflow. For many businesses, critical documentation consists of contracts between the business and its suppliers, or with its customers. If this documentation contains critical verbage or number values, then liability is present. If the main activity of a business is generating critical documents, then even more liability accrues. Second, a business should assess the criticality of its documentation. For instance, a real estate agent could accidentally omit a zero on the total lending value and wreak havoc with the deal. He or she could also neglect important content that puts a new homeowner in trouble with local housing. If a business deals with documents with critical portent or large sums of money, New York E&O coverage is essential. As a final step, each business can contact their local insurance agent and design an E&O policy to meet the specific needs.

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