What is Errors & Omissions Insurance?

Errors and omissions insurance is a specialized sort of coverage that protects the insured against flaws in his own work that result in unforeseen cost. For some industries, those errors and omissions might mean a mistake in a design, for others, a miscommunication or a failure to consider every possibility. Professionals in many industries take significant risks every time they do business because they provide services that their clients and customers depend upon in order to perform. Among those that might benefit from errors and omissions coverage in New Jersey are:

• Architects
• Accountants
• Engineers
• Attorneys
• Others in the unique position of providing knowledge and items of their own design and ingenuity as a product.

That product will occasionally be flawed, no matter the skill of the designer or the care taken by their staff. The errors and omissions that will inevitably be present in a project can be extremely costly to the end result. That cost will either have to be paid out of pocket by the responsible party, or covered by the insurance they carry. Hopefully, that professional hasn't relied on their general liability insurance to cover that, as most general liability policies specifically exclude coverage for errors and omissions. Check with your insurance provider for the best advice on errors and omissions coverage.