Every industry updates its best practices and with new technologies on the market, the way you do business changes on an annual basis. You probably also renew your director’s insurance every year. When you review your policy to ensure it fits your business, it’s time to look at your policies and procedures manual to make sure your staff, managers, and directors have the most current information. This is all part of your risk management plan to maintain premiums and prevent lawsuits from happening.
Errors and omissions happen under the best of circumstances, but when your office is disorganized and not operating under standard procedures, the risk is much higher. Your associates have to understand the principles you have set in your office, to prevent problems down the road. Keeping everyone on the same page is vital to getting the job done right.
No matter what industry in which you provide services, director’s insurance is important to the future of your organization. Don’t leave your directors open to a lawsuit that your business may have to fund out of your profits. Although errors and omissions insurance doesn’t cover fraudulent or criminal behavior, if there is an innocent mistake, your business will be protected. Make sure you can keep providing services to your community with the insurance policy that fits for you.