As a business owner, entrepreneur, or self-employed professional in San Diego, you may be wondering why you should add errors and omissions (E&O) coverage as part of your Vista commercial insurance policy. Depending on the line of business you are in, errors and omissions coverage may be a requirement you must satisfy for licensing and permitting purposes. All the same, this should not be your sole motivation for getting E&O coverage. The following examples of common E&O claims illustrate why this coverage is a necessity in the litigious times we live in.
Even the most unlikely clients could one day surprise you with a lawsuit if they feel your services did not live up to the agreed terms. In recent years, an infamous E&O claim took place in Staten Island, involving city planners suing the architects who designed the William Jefferson Clinton Presidential Library. The loss involved a playground that collapsed after construction. However, the involvement of the architects solely consisted of a pencil sketch of where a few swings could be placed.
In the retail world, customers often fail to tell the difference between accidents, happenstance, and professional mistakes. A shopper slipping on an organic banana peel at Whole Foods is an accident, and the same could be said about a PetSmart incident in 2012, when a puppy got so excited during a grooming session that it became entangled and strangled on electrical cords. The owners of the puppy claimed the PetSmart groomers failed to hold down the animal and prevent it from moving around.
This is the classic “he said, she said” situation. You can try to be as honest as possible when talking to clients and customers, but many of them will have selective hearing and unreasonable bias. If you are an auto service technician who tells a customer that his or her car will require $1,000 worth of repairs to operate optimally, he or she may claim to have heard only $500 instead.
This extremely common claim is often made against those involved in producing creative work. Let’s say you work as a marketing consultant who designs a logo and slogan for a client who ends up being sued by a competitor claiming the branding work is similar to the point of copyright infringement. Since you are the creator of the work in question, your client may consider filing a lawsuit against your business.
You may have heard about malpractice insurance for doctors and dentists, but there are also other types of occupations that may need this type of coverage. If you are the owner of a yoga studio, you may believe a liability waiver signed by a client will protect you when he or she experiences a major sprain during a complicated asana. If the injured client has adequate health insurance, he or she may not do anything. If the client ends up paying out of pocket and missing work, he or she may try to sue you.
In addition to errors and omissions, there are a variety of issues that indicate how important it is to have adequate insurance for your business. At American Tri-Star, we offer a wide array of business insurance options, from E&O insurance to D&O insurance. In addition to commercial insurance, we also offer affordable health, homeowners, and auto insurance in Vista. Call 760-758-1600 today to receive a free quote.