On the surface, it may seem difficult to understand why judgments on negligent business practices can be so harsh. Yet when you consider the consequences of negligence from the client's point of view, you can begin to understand why so much legal action has been taken with respect to Errors and Omissions. Fortunately, there are a number of steps you can take to mitigate your risk of liability.
First and foremost, review your business plan with your associates before drawing up a risk management strategy. Companies usually don't get sued for one mistake out of the blue. Generally, a trend develops. For instance, maybe the employees at your real estate firm don't fill out the proper paperwork when they close clients. If you can manage this culture of negligence, you can help reduce your company's risk significantly.
You should also consider purchasing a comprehensive Errors and Omissions insurance policy. E and O coverage should explicitly reflect the dangers and risks that doing your business entails. Oftentimes, insurance companies will issue generic policy forms. Companies may not review the coverage carefully and may not discover gaps in their E and O protection until well after the fact, usually when a claim occurs.
To acquire the Errors and Omissions protection you need to operate securely, turn to Axis Insurance Services. Our company is recognized throughout the industry as one of the foremost agencies for real estate professionals. We can analyze your current Errors and Omissions coverage, suggest policy alternatives, and connect you with the best carriers from across the nation.
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