PROFESSIONALS FROM AUCTIONEERS TO ZOOLOGISTS RUN THE RISK OF ERROR IN THEIR WORK. HOW CAN YOU PROTECT YOURSELF?
THE PROBLEM: A LITIGIOUS SOCIETY THAT TENDS TO SHOOT FIRST AND ASK QUESTIONS LATER.
No matter what type of services you provide, if your client suffers a loss because of your work, you could find yourself vulnerable to a malpractice lawsuit. Malpractice suits that result in potentially large claims can jeopardize your business and your reputation. Today more than ever, a dissatisfied clients is likely to seek restitution in the court system. Based upon 1990 to 1999 data of one insurer; more than 35% of all claims against professionals result in some cost to the defendant. Frivolous claims, those with no payment to the plaintiff, still generate an average of $22,500 in legal fees and other defense costs. In claims where the professional was liable, payments to the plaintiffs average $120,000 and the total costs of these claims averages about $160,000. If you were faced with paying a bill between $20,000 and $300,000 how would you handle the costs?
THE SOLUTION: ERRORS & OMISSIONS INSURANCE
Errors & Omissions [“E&O”] Insurance, also known as Miscellaneous Professional Liability Insurance protects you and your business from lawsuits and other claim alleging malpractice. E&O Insurance protects you by providing you with legal representation to defend your interests and indemnification in the cast of a settlement or judgment
WHAT TO LOOK FOR WHEN BUYING E&O INSURANCE
Specialty insurance companies typically offer E&O Insurance and each policy differs by company. Plus each professional business tends to be unique in one way or another, therefore, you need to find an E&O policy to match your specific needs. Also, because of the many variables that go into insuring “other” types of professionals costs can vary greatly. That’s why it is best work with a professional liability specialist.
As a specialty broker, Jorgensen & Company can help you:
• Craft your application to explain your services to the underwriters, helping them understand your business better giving them more confidence in your risk profile and therefore securing the right premium for your business;
• Negotiation policy language to match your specific services, reducing the possibility of claims not being covered because of ambiguous policy wording;
• Loss prevention advice – other things you can do to insulate your business from professional liability claims;
• And, should the unfortunate occur and you do have a claim, guide you through the claim process.
Two Steps You Can Take Right Now
Two additional steps - sign up for our free E-Newsletter (we never sell your e-mail address) and we will send you our e-book, “Understanding Professional Liability Insurance” a $9.95 value with no obligation to buy. These documents, loaded with information about how to avoid lawyers professional liability claims can help you begin the process of understanding and managing risk. Then if you don’t have professional liability insurance, don’t waste another minute, call now and ask to speak to one of our specialist brokers (201) 447-4400. And, even if you do have E&O insurance, call today and see how Jorgensen & Company can help you improve coverage and reduce costs.
