Keeping a Finger on the Pulse of Service Industry E&O Exposures
A small business’s financial health is crucial to its success, and one key component to keeping a business financially healthy is making sure it is protected from errors and omissions (E&O) lawsuits. Unfortunately, according to a recent Forbes article, “fewer than three in 10 small business owners have a business owner’s policy…even fewer (21%) have E&O or professional liability insurance.”
E&O lawsuits are one of the most important issues for small businesses to consider, as one mistake can have a devastating effect on a business. This is especially important for service-industry businesses — consultants, property managers, real estate agents, advertising firms and more — as any business offering services or advice for a fee has an exposure to E&O lawsuits.
E&O claims come in many different forms today, ranging from negligence, misrepresentation and inaccurate advice to a tiny oversight leading to a disgruntled client — and all forms can be costly to a small business. Even if an E&O claim is completely groundless, it will still cost money and time to defend. This is why having E&O insurance is essential: It ensures financial viability and provides peace of mind for business owners.
Consider the following claim example:
- After retiring as a high school teacher, a woman became a notary and began offering notary services as a source of income. One day, she notarized an application for a duplicate license for a client who stopped by her house. Distracted by the visit, she didn’t give the notarization proper attention and failed to verify her client’s identity. The license was later used to cash several stolen checks, and the notary was named in the ensuing lawsuit brought by the banks.
As you can see, one misstep for a small business can be an extremely costly mistake; therefore, E&O coverage is imperative.
It is important that as insurance professionals, we ensure our clients have proper protection for all of their needs. In addition to E&O coverage, USLI offers directors and officers, cyber liability and employment practices coverages to protect insureds from all potential professional exposures.
USLI’s Specified Professions Errors and Omissions product is the solution for your business owners who are looking for top service and high quality coverage. Our Professional Lines team has a very broad appetite for E&O and products designed for hundreds of professions. We offer phone and web quoting for a large number of classes, and experienced underwriters can assist in providing the best coverage for your clients’ needs.
Being a small business owner is risky enough; make it easy for your clients to get the proper coverage.
Please contact your Professional Lines underwriter for more information or a quote today.
As always, thank you for your support and business.
Contact Kevin Wills
Second Vice President | 888-523-5545, ext. 2482