Determining what insurance policy is right for the needs of your business can be tricky. In order for you to see success from your efforts, it can help to educate yourself on some of the terminologies. Understanding areas like D&O E&O can make a world of difference when you are exploring the various policies available to you.
The Key Differences
As reported by Axis Insurance, there are key differences between a Directors & Officers policy and an Errors & Omissions policy. Both policies are geared toward protecting your company against wrongful claims, but there are unique pros and cons related to each option. Errors & Omissions policies are typically aimed at helping you with any financial losses incurred by a client caused by your business. Directors & Officers policies typically include:
- Unfair business practices
- Investment issues
- Conflicts of interest
Avoid Legal Troubles
Understanding the differences between these policy options can help you determine which plan is best for your company. A bit of research will help you limit the odds of selecting a policy that leaves coverage gaps and opens you up for a legal battle down the line.
To protect your business, the right insurance policy is key. Take time to weigh out the various options available to you and select a policy that will keep you and your assets secure at all times.