No matter what industry you work in or how big your company is, the frantic pace required to keep up with consumer demands can sometimes get the best of you. Unfortunately, mistakes and oversight can happen before you realize it. While you would hope clients are understanding, your best option is actually a proactive one. You should look at errors and omissions insurance.
Professional Liability Coverage
Also known as professional liability, an errors and omissions policy can take the brunt of the chaos caused by a business mistake. To be clear, this is generally in areas where company or employee negligence or error creates a situation causing a client financial damage. An example could be a financial advisor whose advice didn’t bring the returns promised. The client may bring a lawsuit, and although frivolous, an errors and omissions policy is there for backup. These policies often include the financial means to obtain legal assistance during a claim or lawsuit.
What Type of Claims are Included?
Although the wording on each policy will be different, there are four areas where claims are commonly filed and consequently covered. These are:
- Breach of duty
- Inadequate coverage
- Inadequate communication and documentation
Proactively address financial uncertainty and customer satisfaction by investing in errors and omissions insurance.