Many small business owners want to know just how much of their errors and omissions are covered by their existing policies. Let’s be clear though; errors and omissions insurance does NOT cover intentional acts to deceive or destroy. In other words, if you know that something was omitted or if an error was made, it ceases to become an error or omission and is no longer coverable by your insurance policy.
Many small business owners see errors and omissions coverage as a free license to infringe on copyrights, illegally discriminate, or avoid paying fines. None of the aforementioned items are covered under your errors and omissions insurance policy, nor will they ever be.
A big part of managing risk as a business falls on the quality control team. Sweeping items under the rug is not acceptable behavior whether your company is covered with errors and omissions insurance or not. Do your best to hire managers and team members who take pride in their work so if and when a claim is made against your company, it can be covered by your insurance policy.