The quick and easy (and apt) answer is this – any professional. But we know a blanketed response isn’t what you’re looking for in your quest to make sure that you have adequate insurance coverage for your business. As a result, we have put together a practical list of examples of professional services that should consider errors and omissions insurance essential. Without further adieu, let’s review.
5 Examples of Professional Services That Should Make E&O Insurance a Part of Their Comprehensive Coverage
Accountants and Accounting Firms
There is nary a more vivid example than this. If an accounting firm accidentally leaves out or submits an inaccurate entry in a commercial client’s filing there could be serious ramifications from governing bodies (i.e. CRA) and stakeholders (i.e. investors). If the client sustains financial losses as a result, they will come after the accounting firm. Only E&O insurance can provide the sort of protection they (you?) need.
Lawyers and Law Firms
Tied with accounting services, are lawyers and law firms. Failure to provide important information for a client’s hearing (be it on purpose or accidental) or other deliberation can ironically land a law firm in court with a financially ruinous claim against them. No lawyer or law firm should practice without errors and omissions insurance.
Marketing Consultants and Advertising Firms
Marketing professionals are charged with being the voice of other brands and organizations. Communications contained within campaigns are expected to be truthful for the consumer. Furthermore, communications are supposed to bolster/protect an identity the client has invested heavily in to create in the first place. If a marketing firm has inaccurately promoted a product/service attribute that is untrue, consumers can file a claim while governing bodies may seek to take punitive action against the false claim. Don’t let a single marketing message leave your agency without first getting protected by E&O insurance.
Public Relations Firms
Public relations firms run the same risk of mistakes and exclusions when representing a client via public-facing communications. This is another ironic example, because the backlash against doing so is a public relations nightmare for the client. There’s no question about who they will seek compensation from should the communication faux pas come from their very own PR firm. Furthermore, a PR company itself would unlikely bounce back from such as misstep. Only dedicated errors and omissions insurance coverage will provide a PR provider with peace of mind.
Realtors, Real Estate Agents, and Property Developers
We draw upon one of our whimsical articles which described a scenario in which a property developer neglected to inform buyers that their home was built on sacred ground. Haunting ensued and one of their children was zapped into the living room TV. It’s an age old story.
While the example above is far-fetched (just a little), there is a long history of instances where buyers/investors have entered into purchases riddled with inaccurate information and misrepresentation. An end agent (Realtor, etc.) may not be to blame, as the developer and/or land surveyor may not have disclosed something (a nearby fault line, etc.) that could impact the integrity of the property and future resale value. Every professional in the real estate supply chain must protect themselves with E&O insurance coverage.
We can’t end this discussion about who needs errors and omissions coverage without leaving out (pun intended) this final call to action – protect yourself against claims with E&O – Professional Liability Insurance today. Contact Park Insurance with any additional questions you may have.