ERRORS AND OMISSIONS
Bonds and Errors and Omissions Insurance are two very important in business. These types of policies are to protect a company and the employees and the owner from legal entanglement if a problem arises. It is best to protect yourself and your company from any entanglement.
Bonds can be used to cover a business on a contract to make sure they fulfill it correctly or to cover a business if they do damage to property. Some agencies like Accounting firms and Financial Firms are required to have Bonds, and some companies to get contracts are required to get bonds.
Errors and Omissions Insurance covers an employee and a company in the event a misstatement is made. The fact is it does not cover intentional acts or fraud, but it can cover unintentional acts. It covers the plaintiff’s legal fees and can cover some, if not all, of the settlement cost.