Congratulations! You have finally realized your life-long dream. You have started your own business in your home: a desktop publishing business. Now you can go to work barefoot and without blow-drying your hair.
But wait! You have your computer, your printer, your telephone, and all the office supplies you need. But do you have the necessary insurance?
Here is a nightmare scenario: You put together a glossy brochure for a local car dealership. You have some gorgeous pictures of the brand new Chrysler 200S convertible in the brochure. It’s candy apple red, leather seats, with a retractable hardtop. Three weeks after your gorgeous brochure is put out in public, the dealer calls you, screaming.
Instead of the MSRP of $33,445, the brochure offers the car for $334.45. This is going to cost the dealer a pretty penny, no matter how he handles it. And guess where he wants to get the money from?
If you are counting on your homeowners insurance to get you out of this mess, you are mistaken!
While it is quite likely that the dealership does not have to honor the erroneous price, the customers could sue, and even though the lawsuit would be a frivolous and unsuccessful, it still costs money and time for the dealer to go to court and, if necessary, for you to do the same.
When you sit down with your licensed insurance professional, you will want to bring up the topic of Errors & Omissions insurance as well as a commercial general liability policy.