Tuesday, March 22, 2011

Is Your Business Process Perfect?

You have a revolutionary product or service and your startup business is going to be a huge success. But you will be swimming in uncharted waters and mistakes can easily be made. Or you may have a business plan that will knock the stuffing out of the competition. But you can’t win the war without getting into the trenches and in the heat of battle mistakes are made. Perhaps you have a successful established business. Unless you’re wearing a halo, you have made mistakes in the past and will make them again in future. In all these scenarios, the mistakes can be, at best embarrassing and at worst, ruinous.

You think you are protected from the financial implications because you have liability insurance. But general liability insurance policies do not cover your against errors and omissions (E&O). E&O insurance or professional liability insurance policies protect businesses and professionals against claims made by their clients for damages they have suffered due to negligence or inadequate work. Anyone who reads the newspapers knows that these claims are becoming more frequent and the settlements are often astronomical. Business owners and specified employees and subcontractors are protected under this policy for claims made against them. The amount of coverage is governed by the policy amount and it can be limited to a specified geographical location or to state, country and even worldwide coverage. In today’s world, even the most risk free of business is open to E&O liability. Suppose you run a tailoring business and a needle is left in a dress by accident. A customer claims that when trying on the dress the needle went through her skin and damaged a nerve. You could be sued for millions.

At Allied Brokers, we have been insuring businesses for over 50 years and we know all the risks they face. If you do not have E&O insurance or are not sure if you are properly covered, contact us and we’ll tell you where you stand, what the risks are and show you what you can do about it. All it takes is a call to (650) 328-1000 or an email. Click on http://www.alliedbrokers.com/ to learn more about our business and other insurance services.

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