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Walking the Wire

Tempted to forgo insurance because you're a startup? Think twice. It <i>is</i> possible to get the protection you need.

This story appears in the September 2004 issue of Start Up.

Q: I'm starting a homebased that does background checks. Do I need errors and omissions (E&O) ? I'm having a hard time finding someone to carry my tiny business.

A: Your business will definitely need E&O insurance and for two reasons: First, in today's employment environment, it's not uncommon for lawsuits to arise related to background- checking issues if something's been missed or overlooked. Second, clients feel greater safety in working with firms that have insurance protection, which gives you a definite edge. Many such firms promote that they're insured and bonded on their Web sites, business cards and vehicle signage.

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