Errors and Omissions Considerations for Financial Services Firms

Imagine a bridge built from construction plans that were lacking certain details or had incorrect information. The firm that designed the structure and signed/sealed the plans could be exposed to a lawsuit resulting from damages by an owner or client. Financial institutions provide a range of services to clients of all types. Negligence, mistakes and other unintended outcomes can leave your financial services firm exposed to claims and lawsuits. Here’s why you need finance business E&O insurance to help cover your risks.

Understanding Professional Liability Protection

Professional liability insurance is also called E&O insurance and helps cover your risks based on services you provide or fail to provide. Such coverage can help financial institutions with the following:

  • Investment selections
  • Breach of contracts or agreements
  • Mismanagement allegations
  • Bad faith
  • Allegations of dishonesty
  • Poor trade execution

Providing financial services is not without risks, so a tailored professional liability coverage plan helps protect your finances.

Covering Your Six

A tailored insurance plan helps you manage risks that are obvious and not as obvious. Find an insurer who can help come up with an E&O insurance plan that covers the work and products you deliver. You owe it to your workers, business partners and clients. Despite your best efforts, things can go wrong. Protect your business today.

Why Liability Insurance Is Vital For Your Restaurant

The number of potential restaurant accidents can be overwhelming for a business owner. Between a fast-paced front and back-of-house, hot foods moving around rapidly, and a kitchen full of complex and dangerous equipment, you need to be protected if something unexpected does occur. Restaurant liability insurance is simply essential for a proactive business owner.

What Is Liability Insurance?

Restaurant liability insurance covers the wide variety of claims that can arise from a restaurant accident — ranging from claims filed after falling on a slippery floor, to those following a physical altercation between customers, to alcohol-induced accidents, to claims arising from suspected food poising. Various types of liability insurance — including general liability, liquor liability, and others — will protect your establishment from costly claims.

Why Is It Necessary?

Margins are often tight in the restaurant business, and revenue can be highly seasonal, so facing a claim for which you are unprepared can be fiscally devastating. Moreover, the bustling atmosphere of a restaurant makes accidents an unfortunate, if not entirely uncommon, possibility.

Reputable companies offering restaurant liability insurance know the hospitality industry, common types of accidents, and how to negotiate in the event of a claim or lawsuit threat — offering you valuable peace of mind.

With the potential for a restaurant accident hanging over your head, you simply cannot afford to be without a comprehensive policy of liability insurance.

Understanding the Hammer Clause

Though insurance is financial protection for individuals and businesses against litigation and unreasonable settlement demands, there are times when those who are insured seem to be forced into making certain decisions over the life of a policy. Some of these decisions are the result of the hammer clause.

What Is a Hammer Clause?

There are different clauses within an insurance policy that inform the insured as to what the responsibilities of the insurer are and when these responsibilities take place. With this clause, an insurer can force the insured into settling a claim by issuing a cap on the payout the insurance company will provide. This is often referred to as the settlement cap provision. The cap is usually determined by the insurer as to what the claim or settlement is worth. For the insured who refuses to settle, the costs for defense could come from their own pockets.

When Is the Hammer Clause Used?

In situations where the litigation and defense process will be long and drawn out, the insurer may believe that settling the consumer lawsuit will be less expensive than the alternative. Even if a settlement amount is reached, the insured may still be forced to pay some funds out of pocket, often causing the insured to refuse to sign. In this case, the hammer clause would be applied.

This clause is a protection for the insurer, but it also reduces risks for the insured. Talk to an agent about the extent the hammer clause applies to your policy.

Why Property Managers Should Have EO Coverage

Every business has a variety of insurance coverages to protect its reputation and its assets. As a property management company, your business is no different. In fact, one of the most critical coverages that you should have is property manager E&O insurance coverage, or errors & omissions coverage.

Property Manager Risks

Property managers who specialize in commercial or residential buildings are vulnerable to lawsuits. As a property manager, you cannot discriminate against your tenants based on religion, sex, ethnicity and violate a tenant’s rights. If a tenant alleges that your company discriminates against him or her, this not only damages your reputation, but you may have to pay a large settlement. Other risks include:

  • Misrepresentation
  • Alleged loss of rental income
  • Failure to perform property inspections
  • Wrongful evictions

No matter your industry, there are risks to doing business. As a property manager, you have a lot of risks to take into account.

E&O Coverages

There are a variety of E&O coverages. You may need policies that cover business mistakes, missed deadlines or accusations of negligence. As the market changes, your risks may also change. You need to have the option to change your coverages based on your risks. E&O coverage can apply to property managers of office buildings, residential homes, shopping centers, apartments and more.

Without E&O insurance, a lawsuit could break your company. You must have adequate coverage.

How Misrepresentations Can Create Liability for Businesses

Businesses may have serious difficulty contending with a claim alleging any type of material misrepresentation. Even if a misrepresentation was unintentional, a business could face significant liability.

Accounting Errors

Managing a business’ financial information can be rather complex. Having multiple people responsible for accounting information may add extra protection, but it could also lead to more discrepancies. Misstating a financial position or revenues may land a business in trouble with a partnering business or its shareholders.

Project Status Misinformation

A misrepresentation about the development of a new project could be highly problematic. A lender or investor could have relied on the misrepresentation when choosing to give a business funds. If a project is farther behind than a business indicated, a third party’s return on an investment could be substantially delayed.

Order Fulfillment Capacity Issues

A business-to-business enterprise has to be very conscientious about the volume of work that it takes on. If it accepts work from a client that it does not have the capacity to complete, that other business could suffer major damages.

Ultimately, businesses need to be wary about how misrepresentations create liability exposure. In addition to implementing a high degree of care in how they conduct their operations, they need to safeguard themselves against liability for misrepresentations.

Finding Appropriate Coverage for Manufactured Homes

Every home is unique. No matter what time of dwelling you reside within, it is important to take time and protect your space in whatever way possible. Often, this means researching the most appropriate and comprehensive insurance policy to suit your needs. Certain types of housing will require additional coverage, such as manufactured and mobile homes. Due to the nature of these residences, the extra coverage can help to offer peace of mind to those living within difficult circumstances.

Key Components of Mobile Home Coverage

As reported by a number of outlets, manufactured home coverage includes a few key points. Since many manufactured residences must be constructed or installed on a particular lot, a traditional plan centering around mobile homes will include a type of protection aimed at this part of the process. Standard liability is also a part of the package, as it helps to keep you safe in the event that someone is injured while on your property. Additional points of interest with this coverage include:

  • Coverage for replacement costs
  • Protection for contents and possessions
  • Water damage and other special exclusions

Improve Upon Your Current Policy

Your insurance policy should be as unique as the home you reside in. Take time to review your current policy and see if you might do better with a plan that is designed to cover the specific risks associated with your type of home.

Improving Educational Careers With Liability Insurance

Education is integral to a functional civilization. This means that teachers, principals and other educators play a very important role as they shape today’s youth into becoming successful members of society. However, their profession also leaves them vulnerable to numerous risks and potential lawsuits. School administrators and leaders can protect their staff from such exposures with a strong educator liability insurance policy.

Potential Risks

While teaching does not initially seem like a dangerous career compared to many others, it can open legal disputes. The experts on list some potential risks.

  • Injuries underinsured party’s supervision
  • The hiring of unqualified educators
  • Improper education and teaching methods
  • Physical and sexual abuse claims
  • Privacy rights violations

The instructors are often liable in these scenarios. Regardless of the situation, educational institutions benefit from the protection provided by insurance.

Benefits of Liability Insurance

A strong coverage policy considers every potential vulnerability that instructors face, from claims against them to property damage done to them. They help cover potential legal expenses that would otherwise hurt the school. Even if the teachers’ reputation never recovers, they are compensated for their ordeal. Additionally, a financially healthy institution is best capable of helping its students.

Educators greatly benefit their communities and deserve the best protection against occupational risks and hazards. An educator liability insurance plan is best suited for these situations.

Insurance for Supermarkets and Grocery Stores

If you’re a supermarket industry veteran or executive, you probably already know a thing or two about a supermarket insurance program. If you’re new to the industry or the executive world, however, here’s a quick primer on this type of program.

Accident and Loss Coverage

The supermarket industry is rife with loss and risk. A supermarket insurance program typically covers the following accidents and losses:

  • Customer injuries
  • Food spoilage
  • Hepatitis
  • Power failure
  • Shoplifting

The types of coverage include, but are not limited to, the following:

  • Business auto (hired and non-owned)
  • Property and liability
  • Umbrella
  • Workers’ Compensation

Druggist and liquor liability may also be available to supermarkets and grocery stores that sell pharmaceuticals and beer and wine.

Risk Management and Accident Prevention Services

Many supermarket insurance program providers not only specialize in coverage for accidents and losses but also offer risk management services and accident prevention measures. According to Smithtown, New York-based insurance industry leader Irving Weber Associates, Inc., these additional services help clients to increase the safety of their retail spaces and reduce insurance claims.

Learn More

If you seek a supermarket insurance program, contact a licensed provider in your area. Most providers will work with you to create a coverage program that fits your operation’s unique needs and risk profile.

Insurance Options for Portable Sanitation Providers

Anyone who attends a public outdoor event depends on your services to have a convenient place to use the restroom. While the portable toilets you provide are valued by your customers, they also come with their own share of risks. No matter what situation you find yourself in, having the right insurance can help you be prepared for it.

General Liability Insurance

This is the most basic form of insurance that all businesses need. Within the sanitation industry, it can help to protect you from liability for various accidents that may occur on-site, such as an injury that someone sustained when using your portable toilet. You can also customize general liability insurance so that it suits your specific needs.

Vandalism Insurance

When you provide portable sanitation services, you know that you have to contend with the possibility of vandalism. Fortunately, many portable sanitation insurance packages include vandalism insurance to address these concerns. The costs associated with vandalism can be high, but the right coverage can save you from paying the price.

Commercial Property Insurance

As seen on, this form of insurance protects the property on which your portable toilets are located. If any of the following situations take place, commercial property insurance can cover the relevant costs:

  • Natural disasters
  • Theft and vandalism
  • Fires
  • Burst pipes

Your portable toilets need to be protected under any circumstances for your business to thrive, and a reliable insurance policy can help.

Insurance for Lawyers and Law Firms

Many lawyers think of malpractice insurance as a necessity they’d rather not spend a lot of time with when they think about it at all. While no one likes to dwell on the need for it or the circumstances that lead to a claim, it’s a vital part of a profession that deals with people at their most emotional and confrontational. It is important to spend some time thinking through coverage, too, because as points out, the costs of malpractice are a lot higher than you first think when you look at the dollar numbers on a policy’s coverage sheet. That’s because there are so many things it covers, things that really go beyond what most people think of when they think of the scope of these policies.

  • Cyber attacks and data breaches
  • Hiring and training issues for firm employees
  • Merger and acquisition disputes

Contending With Escalating Causes

As the cost of coverage continues to rise, it’s vital to remember that the number of claims being filed and the industry’s perceived likelihood of claims both feeds into your quote. If you feel like your policy costs are increasing but you’re not actually at higher risk, though, then it’s time to get a quote and have a conversation. Working with an insurance agent who really understands NSO malpractice insurance is a great way to connect to as many carriers as possible, giving you a chance to get the best rate possible for your next policy renewal.