Posts Tagged ‘Paralegals’

Errors & Omission (E&O) or Malpractice (Professional Liability) Insurance

October 26, 2012

Attending a seminar is always of value to me, even if I don’t receive “continuing education credits” (in this case, I did and it is a necessary part of my annual license renewal as an insurance broker) but there are many times I choose to attend seminars, webinars, etc. for general knowledge and the amount of information that is available online is phenomenal so why not use what I can to learn more and share with my clientele?


On this particular occasion, however, I attended one, in person, and was lucky enough to see several people I’ve known for many years and, subsequently, had a chance to converse with some of them.  What I find strange, though, is that insurance companies should truly understand the broker audience they have and relate to them.  To talk about products that are so far above the level of knowledge of the broker audience and then suggest that those brokers should be submitting that type of business is not just ridiculous but amazing. 


I was asked a question by one of my many online friends to define “good customer service” and I used the above situation to enable me to respond.  Why?  The questioner was a paralegal and the type of product discussed at the seminar was Errors & Omissions (E&O) Liability Insurance which most of the insurance broker audience will rarely sell so how much knowledge and experience will that salesperson truly have?  I have many clients who need and buy E&O and we shop the various markets for them to locate the best available coverage and pricing.  These clients range from Property Managers to Environmental Consultants to Contractors, Manufacturers, Alarm Installers, Bio-Tech, Business Continuity Planners, etc. and you can now see the wide range of my expertise.   


Someone once told me that the greatest reason for seeing a “malpractice” (errors/omissions) suit/claim is that YOU aren’t meeting a client’s expectations!  How many businesses set, as their business goal, to “meet or exceed the customer’s expectations”?  Well, it is obvious to me that there is a gaping discrepancy here and it is not because “we” aren’t, in many cases, doing “our jobs” but understanding what the client anticipated being delivered.  AND, the big item to remember is that anyone can sue for this (whether any of us are truly guilty or not) and legal defense costs mount very quickly! 


That is the reason for so many lawsuits in the areas of Professional Liability – we all think we know what is best for the client but there is a complete breakdown in communication between what our clients want, expect and what we are delivering!  This is why it is imperative that “we” buy Errors & Omissions (E&O) Liability Insurance because just imagine the cost a lawyer will bill you when you feel you are innocent and he still needs to defend you in a court of law.  How many hours of work will be necessary to spend on your file (and invoice you for)?  What is the going rate for a good lawyer in this specialized area of law? 


I hate to say that E&O insurance premiums are significantly lower but…isn’t it time for us to now discuss?