One lawsuit against your business can jeopardize your financial stability, which is why you need to learn how to prevent errors and omissions (E & O) claims. The insurance experts at American Tri-Star discuss a few of the strategies your agency can use to avoid getting hit with one of these costly lawsuits.
Keep Paper Trails
It is important to maintain transaction logs and save all electronic copies that relate to a particular transaction. One of the best ways to create a paper trail is to follow up with your clients via emails detailing what you have discussed. In the event a complaint is made, you will have a well-documented file to defend your business.
Certain agencies providing commercial insurance in San Diego offer discounts to businesses that undertake E & O continuing education. Taking classes shows professionalism and commitment to the industry. E & O classes should mainly focus on disclosure laws, ethics, and how to write listing agreements.
Use Industry-Approved Forms
Businesses should use board-approved forms instead of creating their own. Purchase agreements and disclosures are very sensitive, which is why it is best to use the approved forms. San Diego errors & omissions insurance providers also prefer to use forms that have been scrutinized by industry experts.
Conduct Business within Your Area of Expertise
As a business, you need to stay within your scope of experience and expertise. Do not offer clients advice on issues outside your scope, such as tax matters. This strategy shields your business by sealing loopholes that can result in expensive lawsuits.
Ensure All Your Team Members Are Licensed and Insured
Having unlicensed and uninsured team members is a major loophole that can cost agencies thousands in lawsuits. Your business’s team also includes lawyers, appraisers, inspectors, and every other pertinent professional member your agency hires.
If you’d like to learn more about E & O claims and the type of commercial insurance you need to prevent them, get in touch with American Tri-Star today. Call 619-272-2100 and find out about the finest business, health, home, and car insurance San Diego has to offer.