Companies or individuals who perform special services for clients that involve personal care, contracts, legal documents, or investments are often subject to a potential claim of negligence or breach of duty by their clients. For this reason, the advisors at Highland Risk encourage each professional working in fields like insurance, real estate, law, consultation, healthcare or financial advising to carry a strong E&O insurance policy. This stands for errors and omissions, which is simply a negligent act that could be financial harm or otherwise to the client. Carrying insurance coverage provides the accused with the financial means to defend the case or resolve the situation.
Types of Errors and Omissions
The most common types of errors and omissions claims filed against service professionals include:
Insurance coverage was quoted as comprehensive and inclusive of incidents which were later denied because of non-coverage applications.
Filing delays of documents or inaccurate paperwork impeded a favorable court judgment.
Incomplete applications, improper filing, or delayed response lost a contract on a property negotiation.
A delay in treatment, a misdiagnosis, or wrongly prescribed medication by healthcare providers created harm to a patient.
Within each of the scenarios, the individual who experienced loss or harm can bring a lawsuit of negligence against the professional and seek retribution for the situation and damage done. An errors and omission policy helps avoid total financial loss.