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How to Avoid E&O Claims

The U.S. Chamber of Commerce estimates that small businesses pay more than 80% of expenses associated with business lawsuits. Whether you're a freelancer, an independent contractor, or the owner of a small business, you can't ignore this number.

And even if you have an Errors and Omissions policy in place, an E & O claim can hurt you in three ways:

  1. Helping your lawyer prepare a defense for your business will eat up hours of your time.
  2. Having a claim on your record may affect (increase) your premium prices.
  3. A claim, regardless of its merits, can send a message to potential clients that you're untrustworthy or careless with your work.

The following seven-step guide outlines strategies for minimizing the chances that you'll ever have to make a claim on your E and O policy so that you can keep your business in the best financial shape possible.

Next: 7 Strategies for Reducing the Risk of an E&O Lawsuit

70% of businesses raise prices or cut hiring when sued