It’s quite likely that your business faces errors and omissions (E&O) risks every day in the course of doing business as a professional provider. This is a term that is used to describe claims relating the provision of a service, or failure to provide that service by way of negligence or work that is considered subpar or otherwise inadequate. Even if a simple mistake is judged to have caused financial damage to your client, you could be on the hook for substantial damages.
Defense from a lawsuit that result from this type of claim is usually quite expensive, and can easily bankrupt a business. That’s why many purchase an insurance policy that offers protection from this risk. The coverage can help protect you and your business by paying the cost of legal defense and damages from a lawsuit, bringing you real peace of mind.
Tighten up on your practices
While of course there are some cases wherein a claim is the result of true instances of negligence, many times errors or omissions are due to inadequate or outdated processes and procedures. Take time to examine your business policies to avoid inadvertently leaving yourself open to everything from angry clients to a damaged reputation, litigation or at worst, financial catastrophe. For example: Make sure you and all your office staff make a written record of phone or in-person conversations via a memo or call sheet. Handwritten records of communications can be a lifesaver in a courtroom. Also, make sure you and your staff follow all state and federal guidelines concerning privacy rules, as information sharing and security are becoming more and more of an issue these days.
Why gamble with your business?
Work with an experienced professional insurance agent to design a comprehensive E&O program that provides coverage for this very common risk. Call an agent today.