The professional liability of administrative personnel is often covered through errors and omissions insurance policy. Because of human error or other implications creating a personal loss, dissatisfied clients are able to pursue E&O claims and have their grievances settled financially. There are several common claims against professionals that an errors and omissions policy could help address.
Potential Claims Reasoning
Breach of contract. This claim is opened when you fail to perform or complete any of the responsibilities included in the terms of either a verbal or written contract. These failures could be perceived, or they could be as simple as failing to meet a deadline.
Lack of communication. This is considered an act of negligence in taking a reasonable amount of ownership or direction for the contracted relationship.
Misrepresentation. Failing to disclose important information that could protect a client from loss is considered misleading and warrants further legal attention.
E&O claims can be filed against any number of business personnel and are not restricted by industry. The type of field you work in will dictate the specific nature of your professional liability policy. Having too little coverage is just as damaging as not having coverage at all. Your insurance agent will be able to tell you what type of errors and omissions coverage you need to fully address your exposures.