Don’t Be a Victim of Errors & Omissions

It’s a given that financial professionals make mistakes. They’re human, after all. The key is for them not to become a victim of their own errors and omissions. Let’s consider that statement a bit further.

It’s totally natural for insurance, investment, and real estate professionals to make errors and omissions. Why? Because every day they . . .

  • address complex problems,
  • are required to follow highly demanding regulations, and
  • operate in an environment of uncertainty and rapidly changing technology.

Given these forces, it’s a wonder financial professionals don’t make more mistakes than they do.

The issue isn’t that they make mistakes. The problem arises when they become a victim of their mistakes. This can happen in two different ways:

First, financial practitioners sometimes make a mistake and then shrug it off. Rather than assess why they erred in order to prevent it from happening again, they just put the whole incident behind them. In this scenario, an unwillingness to reflect on one’s mistakes and to make adjustments in business practices can trap financial professionals in a perpetual cycle of errors & omissions.

Second, failing to learn from their mistakes can be compounded by not having the proper amount and/or type of E&O insurance in place. Without appropriate liability protection, financial professionals become victims once again. They’re forced to pay out of their own pockets for legal judgments, legal fees, and court costs potentially amounting to tens, if not hundreds of thousands of dollars. By failing to protect themselves, they run the risk of losing their firms, their savings, and their financial security. They become victims of self-created mistakes, and it’s not a pretty sight.

There’s a better way . . . purchasing quality and affordable E&O insurance.

What Can a Full Policy of E&O Insurance Do for You?

Errors & Omissions

The key to not becoming a victim is advance planning. Financial professionals must acknowledge that . . .

  • the risks of getting sued are large,
  • that the potential costs of losing a client lawsuit are immense, and
  • that sensible business professionals arrange to transfer their liability risks to an E&O insurer in order to make them more manageable.

At the end of the day, thinking proactively and realistically about client lawsuits is the ultimate way to avoid victimhood.

So what can a full policy of E&O insurance do for you? In a nutshell, E&O insurance provides financial protection for your business. It generates funds that cushion the financial outcomes of losing a client lawsuit. It does this by providing money . . .

  • to pay for an attorney,
  • to cover the expense of legal judgments and settlements, and
  • to cover court costs that may be levied against you.

By having comprehensive E&O insurance protection, financial professionals avoid becoming personally liable for the direct and indirect financial implications of their error & omissions, up to their policy’s limits.

E&O insurance also provides two less obvious benefits. First, it provides assistance from a highly trained, professional claims adjuster who will help investigate and settle the claim. This allows financial professionals to continue working in their business rather than having to focus on dealing with a client complaint and/or lawsuit. Second, having E&O insurance means financial professionals don’t have to obsess about the financial risks of getting sued. They can simply concentrate on doing great work for their clients without endlessly worrying that their words or actions might spark a lawsuit.

Get Your Full Errors & Omissions Insurance Policy Today

The essence of victimhood is letting external events hijack one’s life. Financial professionals who take control of their destiny will never be victims, in part because they arranged to purchase a full Errors & Omissions policy at the earliest opportunity. How to best proceed? By looking into comprehensive and affordable E&O insurance from online providers who make shopping for coverage quick and convenient. One such entity is EOforLess.com.

Sponsored by the National Ethics Association, EOforLess.com provides a user-friendly platform for financial professionals to easily shop for and purchase high-quality E&O insurance protection. Their website helps professionals buy E&O coverage directly from an insurer without having to go through a broker. Using the firm’s class-leading online shopping platform, agents and advisors can quickly select their desired coverage level and then “click and bind” their policy in minutes. What’s more, buying through EOforLess.com means they never hassle with shopping delays, hidden fees, or deductibles (for life/health policies only).

Bottom line: financial professionals who wish to never become E&O victims must take control of their futures. They must do their best to prevent mistakes. But if they do make one, they should learn from it so they never repeat it in the future. And most importantly, they should purchase E&O insurance so that a mistake never becomes a permanent financial catastrophe—for their business, for their families, and for their financial security.