One Policy Is Not Enough To Protect Your Business
The number of lawsuits businesses face increase each year, which is why insurance policies are necessary. Some of the standard policies can appear similar but are actually different. For example, when choosing D&O vs E&O, which do you need? The simple answer is that you need both.
The Similarities and Differences of the Policies
The main area of focus for both policies is negligence. D&O can protect your company when a lawsuit is filed for negligent acts and an E&O policy does the same. However, while directors and officers insurance sound similar to errors and omissions, they are not interchangeable. This is because they both cover different aspects of a business, which means if you choose one over the other you could be leaving an area unprotected.
The main differences lie in who is covered by the policy. D&O is specifically for executives and management while E&O is for all employees. Transparity Insurance reports that your business needs both policies because each one provides different kinds of protection.
Both Policies Are Essential for Adequate Coverage
You want the right coverage to protect your business against claims of negligence, but which policy suits your needs best? When it comes to D&O vs E&O, you need to be aware that the policies sound similar but do not overlap in terms of coverage. That’s why you need both.