You’ve likely heard the saying that your business is only as good as the people working there. Professional agencies know that assembling the right team helps keep the business trustworthy.
There are benefits to keeping only the best workplace environment and employees. Often, the better you run your business, the lower your professional risks might be. Professional employees might have smaller chances of making unfortunate mistakes. This could lessen the likelihood that you have to file a claim on your errors & omissions (E&O) insurance.
Why E&O Risks Arise
Every business can make mistakes from time to time. Employees might give incorrect or unintentionally inaccurate professional advice, or provide sub-par customer services. It’s always possible that these mistakes might cause harm to the receiving party. For example, an insurance agent who issues an incorrect policy might cause harm to the client. This put the company in a bad position. The improper services might lead to reputational damage, loss of business and financial hardships.
In such cases, E&O insurance might help the business compensate the affected parties. It might also cover the legal fees of resulting lawsuits. The business might not lose out unfairly when trying to recover from the incident.
Keeping Employee Professionalism In Force
You cannot prevent employees from making mistakes. However, you might be able to lessen the chances that they make them.
- When hiring new employees, vet them. Ensure they have the correct qualifications, skills and discretion to perform ably.
- Conduct periodic reviews of employees. Ensure they remain vigilant of their own professionalism. You can often use these times to make recommendations on how they can improve their work.
- Always have good oversight of your employees. You should not hover, but should keep aware of any developing problems or challenges.
- Recommend or require employees to undergo continuing training or education for professional practices. As standards change, make sure employees keep up with industry trends.
- Provide an employee handbook with explicit instructions on workplace conduct. Require employees to acknowledge the handbook as needed.
- Take disciplinary action against any employees who violate workplace rules.
- Create a safe, friendly and healthy workplace environment. Often, the more secure an employee feels, the better they can concentrate on their work.
- If employees express concerns, immediately see what you can do to remedy them.
Should problems arise, your E&O coverage might come in handy. Nevertheless, it’s up to you to make sure your company avoids professional risks at all costs. Doing so can go a long way towards helping you maintain your business success. Call 800-460-6424 to speak to an E & O insurance specialist.
Additional Information: How E&O Insurance May Help New Employees and Protect Your Agency from Mistakes with E&O Coverage