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What E&O Doesn’t Cover

If you are looking for or updating your company’s insurance packages, you might consider errors and omissions insurance. Errors and omissions in New York cover the costs associated with unintentional mistakes made by employees. It can be a useful policy to have, but there are many things that E&O policies don’t cover.

An error covered by this type of policy is not simply anything that goes wrong. If your roof is leaking, and a customer slips and falls, your property insurance covers the damage to your roof, and general liability can cover any claims the customer files. If an employee is hurt on the job, even if it was technically the result of a mistake, that claim is still filed under your workers’ compensation policy.

Errors and omissions in New York is a professional liability policy that covers genuine mistakes or failure to complete tasks. It does not cover intentional negligence. If employees run a scam to cheat customers out of money, this is not an honest mistake. If a product is intentionally damaged in order to claim it on insurance, this is not a loss that your E&O policy will cover. Errors and omissions do not compensate for loss due to illegal activity.

An E&O policy is a great supplement for covering honest mistakes. It is a good addition to your overall insurance investment.