BOBVILA.COM – At a cost of $61 per month, or $735 per year, errors and omissions insurance is an affordable type of business insurance coverage that can prevent financial losses in the thousands—or even millions—of dollars.
Business ownership can be rewarding and lucrative—but it can also be expensive. There are many different costs involved in running a business, from purchasing equipment to hiring employees. One expense that isn’t always top of mind is insurance coverage—and the more insurance coverage a business has, the higher the cost. But operating without business insurance can leave an entrepreneur scrambling to cover legal fees if they are sued by a client for a mistake or omission in the service they provide. That’s where errors and omissions (E&O) insurance, or professional liability insurance, comes in. This type of insurance can cover legal and court costs, settlements, damages, and other expenses related to oversights, missed deadlines, negligence, or breach of contract.