Errors with E&O – Part 4
Errors with E&O – Part 4
At our website www.oneminutefromnormal.com we ask visitors the question: What if an unscheduled event suddenly seizes control of your business? Are you ready?
If human beings were perfect, there would be no need for Errors & Omissions coverage. Until we get perfection, we are fortunate it exists.
Following the 2008 financial crisis, Robert Boatti joined many other previously employed white-collar workers to set up shop as an independent contractor. While he had a one-year severance package and some savings as a financial cushion, he also had the sober realization his employment prospects were not bright.
With two daughters college bound, he knew he would have to hit the street hard before his safety net gave way. He spent his days selling and his early mornings and late evenings getting his work as a marketing consultant done. During weekends he would submit billing, while also taking time out to pay his own bills.
Because Robert Boatti Ventures, like many other firms formed by recently displaced middle level managers, operated on a bare bones budget, there was no funding left over for accountants, lawyers, and compliance officers who set things right at large firms. Since Mr. Boatti had neither the time nor the expertise to do so himself, he didn’t realize there was a professional services exclusion in his Commercial General Liability policy until one of his clients sued him for negligence.
If you, a friend or family member has recently hung out a shingle as an independent contractor, we applaud the entrepreneurial spirit helping our nation to rebound from the financial crisis. We also strongly recommend seeking the guidance of an insurance professional in choosing professional services liability/errors & omissions coverage. Only someone with proper training and experience can fully evaluate a firm’s risk profile, as well as its ability to withstand events that can happen one minute from normal.
To learn more about your own firm’s professional liability risk, and to discuss how E&O insurance can help protect it one minute from normal, please contact your relationship manager at KMRD Partners. He can provide advice regarding your firm’s situation regarding this critical issue.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping organizations recover from unplanned events that wait on the other side of one minute from normal.
To learn more about our insurance and risk management solutions, contact us at contactus@kmrdpartners.com before one minute from normal strikes your organization.
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