In a world that includes all humans, it is difficult for a year to go by without errors. Every small business and corporation has made some type of mistake during its existence. Personal injury suits are lawsuits that can arise if someone in New Jersey makes an error or acts out of neglect. If a defendant loses a personal injury case, the party may end up spending hundreds of thousands of dollars in plaintiff awards and representation costs. To minimize the damage to a company or person, New Jersey insurance companies offer errors and omission insurance.
To pay for Legal Costs
Any company or person that decides against settling out of court for a personal injury case will have legal costs. Sometimes, by the time a case is over, the defendant will spend tens of thousands of dollars. Errors and omissions insurance is a special type of coverage that is separate from the standard liability coverage. This coverage helps to pay for legal representation in a negligence claim, so that the defendant does not suffer financially during the proceedings. Without this special protection, a company or a person can go bankrupt.
To Compensate for Damages
Doctors, lawyers, contractors, small businesses and corporations provide goods and services to other people. Even the slightest error can cause a person to receive an injury in any of these industries. One example of an instance that could turn legal is a doctor failing to give a diagnosis in a safe amount of time. For example, a person who has breathing problems will need immediate chest X-rays, and that person should not leave the hospital without them. If a doctor in the hospital releases the patient without X-rays and diagnosis, and it is later found that the person had pneumonia, the doctor or hospital may have to pay damages. If the person’s illness progresses, the consequences can be worse. Errors and omissions insurance would protect the doctor and hospital in this case. The insurance would cover some of the payments that the courts may grant the injured person.
For Peace of Mind
The most common reason that a person would purchase errors and omissions insurance is to ease his or her mind. Professionals, businesses and contractors would be able to work peacefully, knowing that they had special insurance for emergencies. No one ever knows when a client or patient will decide to visit a personal injury attorney for assistance. Even when the defendant is innocent, that entity ends up spending thousands of dollars in legal fees and court costs. Before falling into the debt associated with lawsuits, a representative can take a proactive step toward financial protection.
Do you need a quote for errors and omissions insurance? Contact us today.