When working as a manager, whether of a business or directly with clients, the effects of your choices or advice can lead to an unhappy person. Perhaps mistakes were made or things just didn’t end up as expected. However, lawsuits can still happen, regardless of the cause. If you have Errors and Omissions insurance for managers, however, this can mean the difference between bankruptcy and a successful company.
What Does Errors and Omissions Cover?
There are a few direct actions or claims that can be considered a part of coverage: professional negligence, mistakes, conflict of interests or failure to deliver. In any of these cases, it can simply be explained as professional liabilities or risks that come with management services. If a client were to claim that any of these actions occurred, whether with or without merit, then the company or individuals within the company could be taken to court. In this case, Errors and Omissions insurance for managers can cover.
- Attorney fees
- Other court payments
What If You’ve Never Faced a Lawsuit?
Unfortunately, the risk of a lawsuit comes more from a client’s attitude and mood than the possibility of a mistake. Even if you’re confident in yours or your employee’s abilities, someone may still get upset enough to file a claim. Yes, the chances may be low, but legal fees involved in these types of claims are quite costly. If an unhappy client ends up bring your business to court, this can lead to financial ruin for your company.