Error Omissions
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Error Omissions
Error Omissions

Avoiding, Mitigating Errors and Omissions Claims


E&O Guidelines Part of a Robust Insurance ProgramE&O Guidelines Part of a Robust Insurance Program

Professionals that provide specialized services require the protection of Errors and Omissions (E&O) insurance. This coverage will respond in the event there is a loss as a result of an error, negligence or failure in the course of providing professional services that causes damages to a client, or in the case of a medical professional, to a patient.

Professionals that need E&O insurance, professional liability, or medical malpractice, depending on the profession, include contractors who have design/build operations, architects and engineers, doctors, attorneys, real estate agents, and financial services professionals, among many others. E&O insurance can be designed to handle claims that are made while the policy is in force, actions completed before your policy began, or claims that become known during a specified period after a policy has been discontinued. In addition, an Errors and Omissions policy can be designed for professionals who want coverage for claims that arise after they have retired.

In addition to securing this must-have insurance protection, what measures can a professional take to mitigate E&O claims in the first place? Following are some guidelines that should be part of your best practices and risk management protocols:

  • At the onset, vet your clients well to avoid doing business with a disreputable firm or an individual that cause problems down the road.
  • Be sure to spell out clearly in an engagement letter or contract the work to be performed, what won’t be included, what the fees are and any and all other relevant information.
  • Ensure that you communicate to your clients an ongoing basis openly and honestly. If, for example, there are going to be delays that will affect a project and result in cost overruns, tell your client immediately. Be sure to document your discussion in writing.
  • Always make sure your client knows the potential benefits and risks associated with the professional service that is being provided.
  • Implement advanced technology and procedures to stay on top of things.
  • Stay within your expertise. If something is outside your wheelhouse, refer the project to other professionals. Also be sure you provide several qualified professionals from which your client can choose.
  • Make sure your clients are current with payments.
  • Implement quality control procedures and undergo periodic internal and external audits.
  • If an issue arises, be sure to let your insurer know immediately – before an incident turns into a claim.

Make sure you have the right Errors & Omissions insurance policy in place. The coverages you need will depend on your profession, so it’s important to deal with an E&O expert. Axis Insurance Services specializes E&O insurance. We work with top-quality insurance companies and can tailor a policy to address the various exposures your profession faces. Give us a call at (877) 787-5258.

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Blogged on: July 16, 2014 by Mike Smith
Error Omissions
Error Omissions
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Error Omissions
Error Omissions