EO and DO Insurance: Essential Parts of Your Business Survival Kit

As a business owner, you know firsthand the effort your team pours into providing top-notch service. But sincerity is no protection against a lawsuit, even when an action lacks merit, and that makes liability insurance necessary. Two building blocks of this protection are errors and omissions coverage, and directors and officers insurance. Knowing the roles of E&O vs D&O will help secure your company’s future.

Errors and Omissions: Safeguarding the Company

E&O coverage protects the corporate entity when a lawsuit names an entire company. Common grounds for these suits are:

  • Breach of contract
  • Failure to disclose material information
  • Missed deadlines

Careful tailoring defines an effective E&O policy, and updating this coverage is crucial as your company evolves.

Directors and Officers: Protecting the Leadership Team

D&O coverage serves as a wingmate to E&O insurance and is triggered when lawsuits individually name officers or board members. Intellectual property violations and breaches of fiduciary duty are frequent grounds for this litigation. D&O insurance is also essential for talent recruitment, as potential directors for your company’s board will insist on this coverage.

While E&O and D&O are vital, seamless protection for your company is your goal. To build across-the-board liability coverage, seek an insurance agency with a proven track record of serving local businesses.

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