Errors and omissions is a type of insurance that every company should obtain. It is what protects businesses in the event that clients hold them responsible for providing a service that did not deliver the expected results. Many types of businesses could benefit from having this kind of insurance. In particular, law firms should consider the advantages of having attorney professional liability insurance.
Why Should Businesses Obtain Liability Insurance?
Mistakes happen, even to the best of employees. Lawyers try to represent their clients as best they can, but they can still make errors. While being flawed is a characteristic of human nature, not everyone is willing to accept that. Clients may file a lawsuit against a particular firm because they feel as though they were poorly represented in their case. Having attorney professional liability insurance will cover any settlement or defense costs that accrue over the course of a lawsuit.
When to Acquire Liability Insurance
The best time for firms to obtain insurance is before an incident occurs. Businesses that are responsible for providing services to clients have a high amount of exposure. An incident can occur at any time, and not having the right insurance could lead to devastating consequences. Moreover, most companies are required to have liability insurance before they can negotiate contracts with clients.
It is important for firms to have attorney professional liability insurance if they want to avoid the financial damage of a lawsuit. Mistakes are bound to occur at some point, and firms need the protection offered by this type of insurance.