Typos, deletions and other office mistakes occur in the everyday transactions of your employees in your business. Most of these are little iniquities don’t rise to the level of major transgressions. But if they do you could be on the hook as well for any legal action, even though you yourself are innocent. Well as innocent as the law will allow. Afterall you run the show. You should have been aware of the activities of your employees.
Employee Benefits Liability Insurance is an insurance policy that can help indemnify you against mistakes or some criminal actions taken by your employee. In tantum with this specialized coverage is Directors and Officers Insurance that protects board members against financial liability for the firm or charity they oversee.
But the overarching coverage for your employees is an Errors and Omissions insurance, sometimes covering individuals and/or the firm’s employees at large. Every reputable broker/dealer and insurance company require E&O insurance. If you have a valuable business, you need to insulate the value, reputation and assets of your company.