Errors and Omissions Risk Management Approches
Buying errors and omissions insurance is an important part of risk management. But risk management goes beyond the purchase of Errors and Omissions insurance. Consider the following low-cost, or no cost strategies to reduce your exposure to errors and omissions, and win more customer respect in the process:
- Allow customers to complain directly and immediately. Talking to frustrated or angry customers – whether over an 800 number, email, or instant messenger — cuts down the likelihood of a lawsuit and helps their satisfaction with your company.
- Be aware of contractually-based risk management basics. Some E&O lawsuits start from false promises over promotion or misleading information provided by the company and or its representatives. Be careful in generating contracts for customers. Don’t make absolute promises and never guarantee any factor, such as a delivery date, or other factors over which you lack complete control.
- Help keep down errors and omissions in your business processes by pulling out inefficiencies in your operations. Be careful when running your business on paper records and verbal commitments. Scan all documents into a computer, record all contracts and pay the utmost attention to detail. This will not only help your business but also cut down on the risk of an E&O lawsuit.
- Make sure you keep extensive records. Phone call logs should be utilized, meeting dates and times as well as documentation.
- Train your staff.. There should be documentation of what was covered in training.
- Have a posted rules of conduct which should deal with honesty.
Having Errors and Omissions insurance is not a right to neglect your business tactics. By following the tenets above will help to prevent certain kinds of problems before they happen. More errors and omissions insurance information can be found at www.eandoinsuranceofamerica.com [http://www.eandoinsuranceofamerica.com]