Small business owners should learn about the insurance they need, including errors and omissions coverage
Advocates suggest a move to more comprehensive insurance coverage, including errors and omissions coverage, which is similar to medical malpractice insurance. Joyce M. Rosenberg of the Pittsburgh Post-Gazette points out:
Mr. Drum is an advocate of companies buying as much insurance as they can, although he acknowledges that many owners don’t want to pay another expense.
“Insurance is part of a small-business person’s life, one of those burdens you have to bear for lots of reasons,” he said.
The article continues:
Mr. Drum said he regretted not buying what’s called employment practices liability insurance — coverage for such worker-related issues as sexual harassment, discrimination, wrongful discipline or termination, and failure to employ or promote. When an employee filed suit against his company, Mr. Drum said the business had to pay legal costs that otherwise would have been covered under an insurance policy.
Another type of insurance many owners should consider is errors and omissions coverage, which is akin to the malpractice insurance that medical and legal professionals carry. It can cover legal costs and damages when a client claims that a service failed to have the expected results, or when a service wasn’t performed at all.
If you’re a small business owner, I encourage you to research your insurance options and seriously consider some strategic additions to your small business insurance coverage.
