FRIDAY, JANUARY 29, 2021
Employee Professionalism Might Lessen E&O Risks
A business’s success depends on its workforce, and you want to assemble a team of trustworthy, reliable employees. There are numerous benefits to hiring and maintaining only the best professionals throughout the company. One of them is that the more professional the company’s standards, the lower its professional liability risks might be. This could lessen the likelihood that you have to file a claim on your errors & omissions (E&O) insurance.
What are Professional Liabilities?
At times, your business might be at fault for a problem that it caused for someone else, and as a result it might have to pay for that party’s losses. Liability insurance will help you cover the requisite settlements and legal expenses that might arise, so that you don’t put a huge dent in your own company’s finances.
Your mistakes don’t have to be physical harm that you cause a client or their property. Instead, your professional strategy or advice might lead to a client sustaining a loss. For example, a CPA who improperly file’s someone’s taxes might get them into a lot of trouble with the IRS. This would make you responsible for the customer’s problem, and they will likely blame you for the issue.
Your E&O insurance will be able to help you out in cases like these. It addresses the fact that your professional advice could cause someone else harm, and it makes sure you have the resources to compensate them because you have a duty to do so.
Why Professionalism Matters
No one is perfect, and part of running a businesses is being prepared for mistakes. Though you can’t eliminate the chances of making professional mistakes, you can make sure you have done everything you can to minimize them.
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Vetting employees is critical to success. Ensure they have the correct qualifications, skills and discretion to perform ably.
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Conduct periodic reviews of employees. You can use these reviews to both address problems and make recommendations on how they can improve their work.
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Oversight is important, and if you notice problems with an employee’s work, then you should be able to address it before it can become a big issue.
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Require continuing training or education for professional practices.
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Institute strict workplace standards for all employees, and make sure these are written down in the company handbook. Take disciplinary action against anyone who violates workplace rules.
Plus, don’t forget to create a safe, friendly and collaborative workspace. The more secure someone feels at work, the more confidence they will have in making professional decisions. Therefore, their risk of making a mistake might drop.
If problems ever arise, then your E&O insurance will come in handy. However, it’s up to you to make sure you minimize your professional risks at all costs. It could go a long way towards helping you maintain both your reputation and your high standard of service.
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