Often times, new companies fail to recognize the totality of the risks involved in business ownership. They analyze every detail relating to their business, but ignore the fact that this is a very litigious society we are currently living in, and there is a significant risk in business ownership in a society such as this one. There are ways to protect against many forms of litigation, such as error and omissions insurance, but there are few ways to prevent the actions that result in litigation, making insurance a particularly valuable investment.
Who Is at Risk?
There are a number of industries that face litigation on a relatively frequent basis for a variety of reasons:
- Real estate and escrow professionals
- Technical and professional consultants
- Architects and engineers
- Legal, medical and financial professionals
- Insurance agents and brokers
Of course, these fields are not the only ones that risk litigation, as any business that could cause financial harm through their actions or inactions can potentially face legal issues of some sort.
How Can You Protect Your Business?
Businesses protect themselves from litigious clients by investing in error and omissions insurance. This type of insurance is a professional liability coverage that ensures that a business is covered in the event of an employee mistake that caused a client to face financial harm. This type of coverage is very valuable in that it protects against potentially astronomical legal fees that could stem from a simple and honest mistake.