Errors and Omissions insurance is a specialty plan designed to help professionals such as lawyers and accountants guard their bottom lines against damages that their clients face and for which they may be held accountable by a judge. For instance, if you have good EO insurance in New York, then if your client faces fines because of an error on your part, your insurance will pay those damages instead of having them come out of your operating budget.
The more accountants or attorneys in your practice, the higher your risk for errors and omissions is likely to be. This means that you will need to include the size of your practice in your equation to determine how much coverage you need. Your agent can go over this factor, and others, to help you design the right plans.
EO insurance in New York covers professionals such as attorneys and accountants from paying the damages your customers face from a mistake on your part. What this means is that if your client decides to sue you for the amount of the damages for which they are liable due to your error or omission, and the judge decides against you, then your insurance will cover the ruling instead of having it taken out of your operating capital.