Tips For Preventing And Mitigating E&O Claims

Errors and omissions insurance is truly a vital component of modern business, because life is simply unpredictable. Business owners never really know what to expect from one day to the next, despite having a thorough schedule laid out in front of them. Some consumers will simply file a lawsuit in hopes of getting one over on your business. Other times, one of your employees may be responsible for the problem. Even the most careful business in the world may experience problems from time to time. Below, you will learn how to prevent and mitigate E&O claims.

A Written Contract

First and foremost, you should make sure you always have a written contract. The contract will prove to be a vital piece of evidence should the client decide to file a lawsuit against you and your company. Of course, not all contracts are equal. When constructing the document, you need to make sure it specifically states what work will be done, what it will cost, and what will not be done. This will allow you to ensure you fulfilled your obligations per the contract and will help to ensure you emerge victorious in the courtroom.

Quality Control Procedures

Many companies have been severely damaged over the years, due to poor or insufficient quality control standards. In all likelihood, you’ve heard about a major company being forced to recall their products at some point or another. The recall was likely enormously costly and it probably caused many consumers to form a negative opinion about the company in question. You need to do your best to avoid a similar mistake. This is where an effective quality control procedure will be immensely helpful.

And of course, you need to continue monitoring and tweaking your quality control standards to ensure they’re up to par. Perform internal and external audits frequently to keep them in working order. This will ensure your company is always able to deliver a satisfactory service to the client.

Open-Door Communication

Many public service providers fail to listen to their customers. Many of them will only listen long enough to gain their trust and earn their business. This is a huge mistake that can end up ruining the company’s reputation and finances. One of the best ways to settle customer complaints is by responding quickly and professionally. Avoiding the complainant will not help matters. In fact, it will only escalate the problem and force the customer to file a lawsuit against the company. By communicating with the customer and solving the issue, you could potentially prevent a lengthy lawsuit and avoid costly litigation fees.

Face-To-Face Meeting

By inviting the customer to a face-to-face meeting to discuss the problem, will definitely be a great place to start. The customer will respect you even more, if you are willing to look them in the face. Of course, you will need to keep your composure, listen to the customer and avoid a shouting match. If necessary, you should consider hiring a mediator to oversee the meeting. If you show the customer that you genuinely care, you may just be lucky enough to spare yourself a trip to the courthouse. To inquire more about errors and omissions insurance in ontario, visit www.liabilitycover.ca