E&O Insurance Claims

Why you need Errors and Omissions Insurance to avoid claims cost

Are you aware of the fact that you’re taking a risk each and every time you work with a new client? In fact, there will always be a possibility that the client will become upset and this could result in a lawsuit being filed against your company. Unfortunately, there is no way to avoid every little mistake and frivolous lawsuits can impact every Ontario business. Therefore, it is impossible to completely negate the possibility of ERRORS & OMISSIONS INSURANCE ONTARIO claims. Nonetheless, there are ways to decrease the chance for problems. Below, you will be provided with tips for avoiding disputes.

why you need errors liability insurance

Employee Training

First and foremost, you should realize that your employees will play a big role in keeping your clients happy and content. If your employees are insufficiently trained, the risks will be increased substantially. By only hiring the best employees and by putting each through rigorous training, you will be able to greatly reduce the potential for problems. These individuals will know their line of work better and they’ll be able to serve the client in a more satisfactory manner. Therefore, you should not overlook the importance of a good training routine for your employees.

Create A Quality-Control Protocol

While you’re at it, you should consider creating a quality-control protocol for your company. This can prove to be immensely effective and it will ultimately help to decrease the frequency of problems. A strong quality-control procedure will help to ensure that your clients are being given the best service humanely possible. Think about recalls. Quality-control is capable of detecting problems, before the product leaves the facility. This ensures problems can be fixed, before the product reaches the public.

And of course, a recall will greatly hurt the company’s reputation, while also costing them thousands of dollars. Therefore, companies in all industries should have some type of quality-control protocol in place.

Contract Construction

Another thing to remember is that the contract you force your client to sign could be used to help alleviate the potential for lawsuits. A solidly constructed contract will help to decrease your liability exposure, while also making it less likely that the client will file a lawsuit. If you want to maximize the effectiveness of your contract, you should work with an attorney. They’ll know precisely what words to use and statements to add to decrease your responsibilities. In return, the quality of your contract may also help you get a lower premium for your errors and omissions insurance.

Speak With The Client Frequently

In many cases, the client will file a lawsuit against the company, due to a lack of communication. Consumers want to know precisely what is happening every step of the way. If you neglect the client and fail to tell them about a potential delay, there will be a major risk. By keeping the client up to date, you will be able to quell problems and complaints, before they can escalate to a full-scale lawsuit. With this in mind, it is generally best to consult with the client at least three or four times a week. This will prove to be beneficial for all parties involved in the project.

Proper Documentation

It is also incredibly wise to document each and every action you take on behalf of your client. If a problem arises and the client attempts to pin the blame on you, this documentation could prove to be incredibly helpful. In fact, the problem may not even fall into your lap. Also, remember to always obtain the client’s signature for new contracts, renewals, and policy change requests. This will ensure that the client is unable to claim you made the change without their knowledge!

insurance claim document

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